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2017 (12) TMI 1144 - AT - Service TaxCalculation of Refund of accumulated CENVAT credit - N/N/. 5/2006-CE(NT) dated 14/03/2006 - Held that - the adjudicating authority wrongly calculated the refund amount taking the Cenvat Credit amount after deduction of the utilized Cenvat Credit, which is not in conformation of the formula provided under N/N. 05/2006 - the appellant s claim of the refund of ₹ 10,01,451/- appears to be correct. The adjudicating authority directed to reprocess the balance refund - appeal allowed.
Issues:
Refund claim calculation under Rule 5 of the Cenvat Credit Rules, 2004. Analysis: The appellant, engaged in various services falling under Section 65 (105) of the Finance Act, 1994, filed a refund claim for accumulated Cenvat Credit. The initial claim was for ?13,51,655, but after scrutiny, the refund was restricted to ?3,01,508. The appellant appealed for the balance refund of ?6,99,942, which was rejected by the Commissioner (Appeals). The appellant argued that the refund calculation should have been based on the formula provided in Notification No.05/2006-CE(NT) dated 14/03/2006. The formula considers unutilized Cenvat Credit and Cenvat Availed, with specific calculations for determining the refund amount. The appellant contended that the lower authorities wrongly sanctioned a lower refund amount of ?3,01,508 instead of the correct amount of ?10,01,451. The appellate tribunal noted that the adjudicating authority miscalculated the refund by deducting the utilized Cenvat Credit, contrary to the formula provided in the notification. The correct calculation should have considered the total Cenvat Credit availed during the quarter, resulting in the correct refund amount of ?10,01,451. Therefore, the appellant's claim for the balance refund was deemed valid, and the tribunal directed the adjudicating authority to reprocess the refund accordingly. In conclusion, the appellate tribunal allowed the appeal, modifying the Commissioner (Appeals) order, and instructed the adjudicating authority to recalculate and process the balance refund of ?6,99,942 as per the correct formula provided in Notification No.05/2006-CE(NT) dated 14/03/2006.
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