2011 (1) TMI 654 - AT - Service Tax

Refund of unutilized credit of service - Export services - Registration taken later but the refund claim pertains to a period prior to that date - registration is merely required for the purpose of maintenance of accounts - the fact that it is the Government s policy not to burden export with domestic taxes - the relevant rules require only those assessees to take registration who are required to pay service tax - This is a case where the respondent-assessees were not liable to pay any service tax but are merely claiming refund of the unutilized credit of tax paid on input service - Decided in favour of assessee.

Summary

The Appellate Tribunal CESTAT, CHENNAI ruled in favor of the respondents who claimed refund of unutilized credit of service tax for export of services. The lower appellate authority set aside the original authority's rejection, stating that registration is not a requirement for enforcing a demand or allowing a refund. The Tribunal found the reasoning sound and rejected the Department's appeals.