Order Date – 16 March 2023

Parties: M/s Saavn Media Private Limited Vs  Commissioner of Central Goods & Service Tax-Mumbai East

Facts –

• The Appellant, M/s Saavn Media Private Limited, are engaged in export of service and they availed CENVAT Credit of Service Tax paid on the input Services. 
• The appellant filed two separate refund applications for refund of unutilized accumulated CENVAT Credit under the provisions of Notification No. 27/2012-CE dated 18.06.2012 issued under Rule 5 of CENVAT Credit Rules, 2004. The refund was partly allowed. 
• Being aggrieved the appellant filed an appeal.

Issue –

• Whether the appellant is eligible for refund?

Order –

• The Tribunal observed that unless CENVAT Credit availed by the appellant has not been recovered by way of issue of show cause notice invoking Rule 14 of CENVAT Credit Rules, 2004, the CENVAT Credit available on the books of account cannot be rejected when it is accumulated on account of export of Service.
• In the present case the amounts of CENVAT Credit was not disallowed by way of invoking Rule 14 of CENVAT Credit Rules, 2004 and therefore, the said amounts are available in the account of the appellant. 
• Hence it was held that since the CENVAT Credit is available on the accounts of the appellant, the refund of the same could not be rejected. Therefore, it set aside the impugned order to the extent of rejection of refund of CENVAT Credit and directed the authority to allow the refund.