2011 (11) TMI 279 - AT - Service Tax

Re-credit of CENVAT credit on courier service of the amounts (which assessee had reversed) in CENVAT account previously claiming refund - Held that - The refund is admissible under Notification No. 41/2007-ST dated 06.10.2007 as amended by Notification No. 03/2008-ST dated 19.02.2008. The appellant no longer claims refund. Hence, they are at liberty to agitate before the original authority for re-credit of the amounts in CENVAT account by citing the relevant provisions of law and relevant decisions if any. For this limited purpose, the order is set aside and matter is remanded back to the original authority.

Summary

Issues:
1. Rejection of claim for refund of CENVAT credit on 'courier service' reversed for a specific period.
2. Challenge against rejection of refund claim for interest amount paid at the time of reversal.
3. Applicability of Notification No. 41/2007-ST and 03/2008-ST for refund.
4. Alternative plea for permission to take re-credit of the amounts in CENVAT account.

Analysis:
1. The judgment deals with two appeals challenging the rejection of refund claims for CENVAT credit on 'courier service' reversed for specific periods. The appellant had initially claimed the credit under Rule 2(l) of the CENVAT Credit Rules 2004 but later reversed it due to an audit objection. The main contention was the admissibility of the refund under relevant notifications.

2. The appellant, in each appeal, argued that the refund was admissible under Notification No. 41/2007-ST as amended by Notification No. 03/2008-ST. However, during the proceedings, the appellant did not press this contention and instead sought permission to take re-credit of the amounts in their CENVAT account. The judge noted this change in stance and considered the alternative plea.

3. After careful consideration, the judge decided that the question of allowing re-credit of the reversed amounts in the CENVAT account should be addressed by the original authority. The judge emphasized that this specific issue was not raised before the lower authorities earlier. Therefore, the cases were remanded to the original authority for a fresh decision on the re-credit request, providing the appellant with a reasonable opportunity of hearing.

4. The judgment highlights the importance of procedural fairness and adherence to raising all relevant issues before the appropriate authorities. By setting aside the impugned orders and remanding the cases for further consideration, the judge ensured that the appellant could pursue the alternative relief of re-credit through the proper channels, citing relevant legal provisions and decisions. This comprehensive analysis of the issues involved demonstrates a balanced approach to resolving the refund claims in question.