2018 (7) TMI 621 - AT - Service Tax

Refund of unutilized CENVAT Credit - Rule 5 of CENVAT Credit Rules, 2004 - rejection on the ground that the premises has not been registered by the appellant before availing the credit - Held that - The issue stands settled in the case of COMMISSIONER OF SERVICE TAX-III, CHENNAI VERSUS REED ELSEVIER PRIVATE LIMITED, CUSTOM, EXCISE AND SERVICE TAX APPELLATE TRIBUNAL, CHENNAI 2017 (4) TMI 1234 - MADRAS HIGH COURT , where it was held that Rule 5 of the 2004 Rules does not stipulate registration of premises as a necessary prerequisite for claiming a refund - refund cannot be rejected on this ground - appeal allowed - decided in favor of appellant.

Summary

Issues Involved:
Refund claim rejection based on non-registration of premises for credit availed, grounds for rejection of refund claim, legal validity of rejection grounds, applicability of High Court judgments on premises registration for credit eligibility.

Analysis:
The case involved a refund claim under Rule 5 of CENVAT Credit Rules, 2004 for unutilized credit by an entity providing consulting engineering services. The original authority rejected the claim based on non-registration of premises before availing the credit. The appellant appealed to the Commissioner (Appeals), who upheld the rejection on all grounds, including non-filing of declaration before export, credit accumulation pre-registration, incorrect ST-3 return information, and service recipient distinction. The appellant then approached the Tribunal challenging the rejection.

The appellant's counsel argued that the adjudicating authority had already found three grounds for rejection to be incorrect, and since the department did not appeal, the rejection based on those grounds by the Commissioner (Appeals) was improper. The Tribunal agreed, setting aside the rejection on those three grounds. The remaining issue was the eligibility for refund concerning credit availed before premises registration, citing relevant High Court judgments.

The Tribunal held that the rejection of the refund claim was unjustified, as the grounds rejected by the adjudicating authority were improperly upheld by the Commissioner (Appeals) without a departmental appeal. Additionally, the issue of credit eligibility before premises registration was deemed in favor of the appellant based on precedents. Consequently, the impugned order was set aside, and the appeals were allowed with any necessary consequential relief.

In conclusion, the Tribunal found the rejection of the refund claim to be unwarranted, emphasizing the importance of proper legal procedures and precedents in adjudicating such matters. The decision highlighted the significance of adhering to legal principles and established judgments in tax refund cases, ensuring fair treatment for taxpayers.