2017 (2) TMI 946 - AT - Service Tax

Refund claim - N/N. 41/2007-ST dated 06.10.2007 - denial on the ground that the conditions of the Notification had not been complied - Held that - Both the Adjudicating Authority as well as first Appellate Authority erred in examining the claims in term of 41/2007-ST ibid - In an identical matter, the Tribunal in the case of Gaurav International Vs. C.S.T. Delhi 2014 (4) TMI 1070 - CESTAT NEW DELHI remanded the matter to the original Adjudicating Authority for verification of the documents and satisfaction of the conditions of Notification - appeal allowed by way of remand.

Summary

Issues:
Appeal against rejection of refund claims under Notification 17/2009-ST dated 07.07.2009 due to non-compliance with conditions of Notification 41/2007-ST dated 06.10.2007. Allegation of incorrect facts in the order of the Commissioner (Appeals) and non-application of mind. Examination of claims under the correct notification.

Analysis:
The appellant filed two refund claims under Notification 17/2009-ST dated 07.07.2009, which were rejected by the Adjudicating Authority for non-compliance with the conditions of Notification 41/2007-ST dated 06.10.2007. The Commissioner (Appeals) upheld the rejection, leading to the appeal before the Tribunal. The appellant argued that they had provided necessary documentation to meet the conditions, including a detailed chart certified by a Chartered Accountant. However, discrepancies were noted in the documentation considered by the Commissioner (Appeals), suggesting a lack of proper evaluation.

The Tribunal observed that the Commissioner (Appeals) upheld the rejection based on grounds not mentioned in the adjudication order, indicating a lack of thorough consideration. Additionally, both the Adjudicating Authority and the Commissioner (Appeals) failed to identify deficiencies in the invoices and explain how the conditions of the relevant notifications were not fulfilled. It was also noted that the claims were filed under the wrong notification, requiring assessment under Notification 17/2009-ST, not 41/2007-ST. In a similar case, the Tribunal had remanded the matter for verification of documents and satisfaction of conditions under the correct notification. Consequently, the Tribunal decided to remand the case back to the original Adjudicating Authority for a fresh examination of the claims based on the correct legal provisions.

The Tribunal allowed the appeals by way of remand, granting the appellants the opportunity to resubmit the complete chart certified by a Chartered Accountant. The original Adjudicating Authority was instructed to reevaluate the claims on their merits and issue a new order in compliance with the law. This decision was pronounced on 02.11.2016.