2018 (3) TMI 864 - AT - Service Tax

100% EOU - Refund claim - export of services - denial on the ground appellant had not debited the amount for which refund has been claimed, as required by N/N. 27/2012-CE (NT) dated 18.06.2012 - Held that - On the specific query from this Bench as to whether these details were produced before the Adjudicating Authority or otherwise, it was submitted by appellant possibly were unable to produce the details before the Adjudicating Authority - the appellant has to produce these details, before the Adjudicating Authority. Matter remitted back to the Adjudicating Authority to reconsider the issue afresh after following the principles of natural justice - appeal allowed by way of remand.

Summary

Issues: Refund of service tax paid on input services by a 100% EOU, rejection of refund claim by lower authorities due to failure to debit the claimed amount as required by Notification No. 27/2012-CE (NT).

In the judgment delivered by the Appellate Tribunal CESTAT HYDERABAD, the issue at hand pertained to the refund of service tax paid on various input services by the appellant, a 100% Export Oriented Unit (EOU). The appellant had availed CENVAT credit of the input services and exported services without discharging any tax liability, thus being eligible for the refund of the service tax credit availed. However, the lower authorities rejected the refund claim on the basis that the appellant had not debited the amount for which the refund was claimed, as required by Notification No. 27/2012-CE (NT) dated 18.06.2012.

During the proceedings, the appellant's counsel presented a chart indicating debits, albeit produced subsequently. In response to a query from the Bench regarding the submission of these details before the Adjudicating Authority, it was revealed that the appellant possibly failed to provide these details to the Authority. The Member (Judicial) opined that the appellant should have submitted these details before the Adjudicating Authority and that the Authority should have been given the opportunity to review the details. Consequently, without expressing any opinion on the merits of the case and leaving all issues open, the matter was remitted back to the Adjudicating Authority. The Adjudicating Authority was directed to reconsider the issue afresh, following the principles of natural justice, and instructed to dispose of the matter within a period not exceeding 3 months from the date of the order. The appeal was thereby disposed of, with the order being dictated and pronounced in open court.