2019 (6) TMI 726 - AT - Service Tax

Refund claim - refund rejected on the ground of time bar - HELD THAT - It is observed that the appellant before filing formal refund claim, they had written a letter to the department for adjustment of the cenvat credit. Therefore, the said letter should be considered as refund claim only and the period of limitation should be reckoned considering the letter dated 22.10.2014 as a claim for refund. Adjustment of cenvat credit - HELD THAT - This is cenvat credit which was already accrued to the appellant, before 01.09.2014 there was no time limit for which adjustment was sought for all the invoices were issued prior to 01.09.2014, therefore, cenvat credit on the said invoices cannot be denied on the ground of time bar - the demand of ₹ 1,85,149/- is not sustainable and the same is set aside. Appeal allowed in part.

Summary

Issues:
1. Entitlement for refund of ?81,533
2. Entitlement for adjustment of cenvat credit of ?1,85,149

Analysis:
1. The appellant's refund claim of ?81,533 was rejected on the grounds of time bar. The appellant argued that a letter requesting adjustment of the amount against service tax should be considered a refund claim. The tribunal agreed, considering the letter as the refund claim and not subject to time limitations. The tribunal set aside the rejection and allowed the refund claim to be re-processed.

2. Regarding the adjustment of cenvat credit of ?1,85,149, the appellant claimed that there was no time limit for availing cenvat credit before 01.09.2014. As all invoices were issued prior to this date, the tribunal found the cenvat credit to be valid and accrued to the appellant. Consequently, the demand for ?1,85,149 was deemed unsustainable and set aside by the tribunal.

In conclusion, the tribunal partially allowed the appeal, ruling in favor of the appellant on both issues. The judgment was pronounced on 13.03.2019 by Shri Ramesh Nair, Member (Judicial) at the Appellate Tribunal CESTAT Ahmedabad.