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2010 (12) TMI 176 - AT - Service TaxDTA service Refund claim - Service Tax paid by them from CENVAT Credit - appellant was advised to make the payment of Service Tax in cash accordingly the appellant paid the Service Tax with interest - appellant maintained that they were eligible to pay the Service Tax by utilizing CENVAT Credit amount filed a refund claim - appeal filed by the appellant against rejection of refund claim was rejected but the appellant allowed to take CENVAT Credit already reversed by them towards payment of Service Tax on DTA service
Issues involved:
1. Utilization of CENVAT Credit for payment of Service Tax on DTA service 2. Rejection of refund claim Analysis: 1. The appellant was paying Service Tax on DTA service from their CENVAT Credit account. However, they were advised to make the payment in cash as the CENVAT Credit cannot be utilized for this purpose. The appellant disagreed, claiming they were eligible to pay using CENVAT Credit. They filed a refund claim which was rejected. The appellant cited various Tribunal decisions supporting their stance, including Mahindra Ugine Steel Co. Ltd. Vs. CCE 2008 (12) STR 159 (Tri-Mumbai) and others. The appellant sought to end the litigation by requesting the restoration of the Service Tax paid from CENVAT Credit and refund of interest in cash. The Tribunal noted that once the appellant had paid in cash, refunding interest alone was not possible. The appellant agreed that if the refund was not granted but the credit was restored, the issue could be closed. The Learned SDR had no objection to this proposal. 2. The appellant's appeal against the rejection of the refund claim was dismissed. However, the Tribunal allowed the appellant to take the CENVAT Credit already reversed by them towards the payment of Service Tax on DTA service. This decision effectively resolved the issue by permitting the appellant to utilize the CENVAT Credit for the payment, as sought by the appellant, while also acknowledging the initial rejection of the refund claim. The Tribunal's ruling balanced the interests of both parties and provided a practical solution to the dispute, allowing the appellant to use the CENVAT Credit without granting a refund separately.
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