2022 (4) TMI 1476 - AT - Service Tax

Seeking permission for withdrawal of appeal - Refund claim - jurisdiction of tribunal - appropriate forum - Revenue contends that this matter is excluded from the jurisdiction of Tribunal as it pertain to rebate of tax arising from export and that, in terms of section 86 of Finance Act, 1994, redressal lies before the Government of India in revisionary jurisdiction. HELD THAT - The issue pertains to the refund of tax on input services that are not claimable for refund under rule 5 of CENVAT Credit Rules, 2004 by an exporter by reason of ineligibility for taking of credit. Consequently, these are to be dealt with under the appropriate provisions of Central Excise Rules, 2002 as applicable to Finance Act, 1994. The appeal is sought to be withdrawn to seek remedies available under law - Appeal is dismissed as withdrawn with liberty granted to the appellant to seek remedy with the appropriate authority prescribed by law.

Summary

Issues:
1. Jurisdiction of the Tribunal regarding the rebate of tax arising from export.
2. Denial of the benefit of notification no. 41/2012-ST dated 29th June 2012.
3. Refund of tax on input services not claimable under rule 5 of CENVAT Credit Rules, 2004 by an exporter.

Analysis:

1. The appeal was filed against the order-in-appeal dated 17th July 2020, where the denial of the benefit of notification no. 41/2012-ST was upheld. The Authorized Representative argued that the matter falls outside the Tribunal's jurisdiction as it concerns the rebate of tax from exports, which, according to section 86 of the Finance Act, 1994, should be addressed through revisionary jurisdiction by the Government of India.

2. The Tribunal observed that the issue at hand involves the refund of tax on input services that an exporter is unable to claim under rule 5 of the CENVAT Credit Rules, 2004 due to ineligibility for credit. Consequently, these matters should be addressed under the relevant provisions of the Central Excise Rules, 2002, as applicable to the Finance Act, 1994.

3. In light of the arguments presented, the appellant sought to withdraw the appeal to pursue remedies available under the law. The Tribunal dismissed the appeal as withdrawn, granting the appellant the liberty to seek redress with the appropriate authority as prescribed by law. The decision was dictated and pronounced in open court by the Tribunal.

This judgment clarifies the jurisdictional aspect regarding the rebate of tax arising from exports, the denial of specific benefits under relevant notifications, and the refund of tax on input services for exporters, emphasizing the need to adhere to the appropriate legal provisions for seeking remedies in such cases.