2017 (9) TMI 590 - HC - Central Excise

Refund claim - Whether the Hon ble CESTAT was correct in allowing the CENVAT credit of the services used at unregistered premises and refund thereof? - Held that - the refund could not be denied to the assessee merely on the basis of non-registration of the premises - appeal dismissed - decided against appellant.

Summary

Issues:
Central Excise Appeal under Section 35-G of the Central Excise Act, 1944; Refund of CENVAT credit for services used at unregistered premises.

Analysis:
The judgment pertains to a Central Excise Appeal under Section 35-G of the Central Excise Act, 1944, arising from Appeal No. ST/51147/2015 against an order dated 09.06.2016. The Tribunal had allowed the claim of the assessee for a refund, leading to the department raising the question of whether the CENVAT credit of services used at unregistered premises and the refund thereof were correctly allowed by the Hon'ble CESTAT. This issue had been previously considered by the High Court in the case of Commissioner, Service Tax Commissionerate Vs. M/s Atrenta India Pvt. Noida, where it was held that the refund cannot be denied solely based on non-registration of premises. The Tribunal in the present matter noted that the premises in question were rented in April 2012, and the application for inclusion of the address in the centralized R.C. was approved in July 2013. Additionally, it was highlighted that as per Rule 3 of CCE 2004, it was not mandatory for input services to be received at registered premises of the output service provider.

The Court, considering the above facts and legal provisions, answered the question in favor of the assessee and against the department. It was concluded that the refund could not be denied based on the non-registration of premises, and therefore, the appeal was dismissed.