2015 (11) TMI 1178 - AT - Service Tax

Denial of refund of CENVAT Credit - Unutilized CENVAT Credit - Export of service - Held that - So far as the ineligible Cenvat credit is concerned, as recorded by learned Commissioner (Appeals), the appellant has no material to suggest reversing that part of the order. So far as service tax paid prior to registration is concerned, law is well settled by Hon ble Karnataka High Court and similar ratio followed by Tribunal in E-Care India Pvt. Ltd . (2011 (1) TMI 654 - CESTAT, CHENNAI).The appellant is entitled to the Cenvat credit of the service tax paid prior to registration on the ground that the registration being prescribed only for the purpose of maintenance of accounts and for following procedure of law, it cannot be said that registration is mandatory to grant refund. Accordingly, only to the extent of refund claim pertaining to the service tax paid prior to registration is to be allowed - Decided partly in favour of assessee.

Summary

Issues:
1. Eligibility of refund for unutilized credit from service tax paid on exportable service.
2. Availment of Cenvat credit on specific services.
3. Entitlement to Cenvat credit for service tax paid prior to registration.

Analysis:
1. The petitioner argued that registration is not mandatory for granting a refund of unutilized credit from service tax paid on exportable service, citing relevant precedents. The Revenue contended that the appellant availed Cenvat credit on certain services but was only entitled to a refund for service tax paid prior to registration. The Commissioner (Appeals) found that the appellant did not qualify for a refund on all services except for the service tax paid before registration.

2. Upon examination of the records and hearing both parties, the Tribunal upheld the Commissioner's decision regarding the ineligible Cenvat credit. The appellant failed to provide evidence to challenge this aspect of the order, resulting in the confirmation of the decision.

3. The Tribunal referred to legal precedents, including a judgment from the Hon'ble Karnataka High Court, to establish that registration is not mandatory for granting a refund of service tax paid prior to registration. The appellant was deemed entitled to Cenvat credit for service tax paid before registration, as registration is primarily for accounting and procedural purposes. Consequently, the Tribunal allowed the refund claim pertaining to the service tax paid prior to registration while partially allowing the appeal.

In conclusion, the Tribunal upheld the decision regarding ineligible Cenvat credit but granted the appellant a refund for service tax paid before registration based on established legal principles and precedents.