2018 (1) TMI 110 - AT - Service Tax

100% EOU - Refund of CENVAT credit of service tax paid under Voluntary Compliance Entitlement Scheme (VCES) availed - Held that - the appellant is under wrong understanding that Cenvat credit availed for the taxes paid under VCES-2013 can be claimed as refund - Section 109 of Chapter VI of Finance Act 2013 explicitly states that such amount paid shall not be refunded in any circumstances - appeal dismissed.

Summary

Issues:
- Appeal against rejection of part refund claim under Cenvat Credit Rules, 2004 for tax paid under 'Service Tax Voluntary Compliance Encouragement Scheme (VCES), 2013'.

Analysis:
1. The appellant, a 100% exporter of service, appealed against the rejection of a part refund claim of &8377; 18,50,352/- under Cenvat Credit Rules, 2004 for tax paid under the 'Service Tax Voluntary Compliance Encouragement Scheme (VCES), 2013'.

2. The appellant claimed that they were eligible for a refund under Rule 5 of Cenvat Credit Rules, 2004 for the tax paid under VCES-2013. However, the Revenue argued that Section 109 of Chapter VI of Finance Act, 2013 explicitly states that any amount paid in pursuance of a declaration under VCES is not refundable under any circumstances.

3. After considering the submissions, the Tribunal found that the appellant misunderstood that Cenvat credit availed for taxes paid under VCES-2013 could be claimed as a refund. The Tribunal cited Section 109 of the Finance Act, 2013, which clearly states that amounts paid under VCES declarations are non-refundable.

4. Consequently, the Tribunal upheld the impugned order, dismissing the appeal as without merits. The judgment highlighted that Cenvat Credit taken for taxes paid under VCES is not refundable to the appellant.