2018 (3) TMI 1133 - HC - Service Tax

Refund claim - Whether the Central Excise and Service Tax Appellate Tribunal is justified in accepting the appeal preferred by the assessee irrespective of the fact that the conditions referred in the N/N. 41/2007-ST dated 06.10.2007 and 451/2007-ST dated 06.10.2007 have not been adhered? Held that - considering the fact that the case has been remitted at the request of learned representative of the Department itself, therefore, the substantial questions of law, which have been framed in these appeals while admitting the appeals, are not required to be answered because the matter has been remitted to the original adjudicating authority for deciding the case afresh, therefore, obviously now it is the duty of the adjudicating authority to consider the said notification. The matter is remitted by the Customs/Excise & Service Tax Appellate Tribunal, New Delhi for decision afresh.

Summary

Issues:
1. Central Excise Appeals by Union of India against orders of Customs, Excise and Service Tax Appellate Tribunal and Commissioner (Appeal).
2. Adherence to Notification Nos. 41/2007-ST and 451/2007-ST dated 06.10.2007.
3. Entitlement to refund of service tax.
4. Acceptance of debit notes as admissible documents for refund.
5. Proof of payment by service provider for refund.
6. Remand of cases for fresh adjudication.
7. Consideration of notifications by original adjudicating authority.
8. Disposal of appeals based on similar precedents.
9. Directions to original adjudicating authority for fresh decision.

Analysis:
The Central Excise Appeals filed by the Union of India challenged the orders of the Customs, Excise and Service Tax Appellate Tribunal and the Commissioner (Appeal). The main issue revolved around the adherence to Notification Nos. 41/2007-ST and 451/2007-ST dated 06.10.2007. The Tribunal remanded the case for fresh adjudication, directing the original adjudicating authority to consider the said notifications during the decision-making process. The Tribunal held that the assessee was entitled to a refund of service tax paid, even though refund was initially denied due to the submission of debit notes instead of proper invoices. The Tribunal accepted the debit notes as admissible documents for the purpose of refund and dismissed the revenue's contention regarding the lack of proof of payment by the service provider.

In light of the remand request by the Department's representative, the Court ruled that the substantial questions of law framed in the appeals were not necessary to be answered, as the matter was remitted for fresh adjudication. The Court cited a previous judgment in a similar case to support its decision. Consequently, all appeals were disposed of with a direction to the original adjudicating authority to consider both Notification Nos. 41/2007-ST and 451/2007-ST dated 06.10.2007 during the fresh decision-making process and provide an opportunity for both parties to be heard.

Overall, the judgment emphasized the importance of following relevant notifications, entitlement to refunds, acceptance of debit notes, proof of payment, and the necessity for fresh adjudication based on remand requests. The Court's decision aimed to ensure a fair and thorough consideration of the case by the original adjudicating authority in compliance with the applicable notifications and legal principles.