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2019 (5) TMI 59 - AT - Service TaxRebate claim - N/N. 11/2005-ST dt. 19/04/2005 - Rejection of benefit of notification on the ground that the appellant was not registered - HELD THAT - The rejection of the rebate claim under Notification No.11/2005-ST dt. 19/04/2005 on the ground that the appellant was not registered is not sustainable in law in view of the judgment of Hon ble Karnataka High Court in the case of mPortal India Wireless Solutions Pvt. Ltd. 2011 (9) TMI 450 - KARNATAKA HIGH COURT wherein it has been held that registration with the Department is not a prerequisite for claiming the credit. As far as other grounds on which rejection has taken place is not legally tenable because the appellants have produced all the documents in support of the rebate claim but the same have not been properly examined. Case remanded back to the original authority with a direction to decide the claim of the appellant within a period of three months from the date of receipt of this order - appeal allowed by way of remand.
Issues:
Rejection of rebate claim under Notification No.11/2005-ST on the ground of non-registration. Examination of documents supporting the rebate claim. Legal tenability of rejection based on discrepancies in documents. Analysis: The appeal challenged the rejection of a rebate claim by the Commissioner (Appeals) in a case involving export of Advertising Agency Services and Business Support Services. The rejection was based on discrepancies such as lack of correlation between export invoices and Foreign Inward Remittance Certificates (FIRCs), non-furnishing of ST-3 returns, absence of agreements between exporter and client, and failure to establish fulfillment of conditions under Rule 9(6) of CENVAT Credit Rules, 2004. The original authority and Commissioner (Appeals) upheld the rejection, citing precedents like mPortal (India) Wireless Solutions Pvt. Ltd. and Fine Care Biosystems. The appellant's consultant argued against the rejection, citing precedents that registration is not a prerequisite for claiming credit and that the rejection based on invoice details was unjustified. The Tribunal found the rejection on the ground of non-registration unsustainable, referencing a Karnataka High Court judgment. It noted that all documents supporting the rebate claim were not properly examined and referred to a similar case remanded by the Tribunal for further consideration of evidence. The Tribunal allowed the appeal, setting aside the impugned order and remanding the case to the original authority for a fresh decision within three months, emphasizing compliance with principles of natural justice. This judgment addressed the legal issue of the rejection of a rebate claim under Notification No.11/2005-ST on the ground of non-registration. The Tribunal held that registration is not a prerequisite for claiming credit, citing a Karnataka High Court judgment. It emphasized that the rejection based on non-registration was not legally tenable. The Tribunal also highlighted the importance of properly examining all documents supporting the rebate claim, noting that a similar case was remanded for further consideration of evidence. The Tribunal directed the original authority to decide upon the appellant's claim within three months, allowing fresh submissions and ensuring compliance with principles of natural justice. The judgment provided a detailed analysis of the legal arguments presented by both sides regarding the rejection of the rebate claim. The appellant's consultant cited relevant precedents to support the argument that registration is not required for claiming credit and that the rejection based on invoice discrepancies was unjustified. The Tribunal carefully considered these arguments, ultimately finding the rejection on the ground of non-registration unsustainable and emphasizing the need for a thorough examination of all evidence. By allowing the appeal and remanding the case to the original authority, the Tribunal ensured a fair and comprehensive review of the rebate claim within a specified timeframe, with a focus on upholding the principles of natural justice.
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