2022 (10) TMI 1078 - AT - Service Tax

Cash Refund of service tax - ocean freight - refund sought on the ground that appellant is entitled for Cenvat credit of service tax paid on ocean freight - Section 142(3) read with Section 11B - HELD THAT - This Tribunal in the case of GALAXY POLY PLAST INDUSTRIES VERSUS COMMISSIONER OF CENTRAL EXCISE ST, VADODARA 2022 (7) TMI 567 - CESTAT AHMEDABAD has held that Both the lower authorities passed the order on the ground that the refund which were claimed than cash refund of Cenvat credit of service tax paid on ocean freight in terms of Section 142(3) read with Section 11B is not admissible. The matter is remanded to the original authority - Appeal allowed by way of remand.

Summary

Issues Involved:
1. Entitlement for refund of service tax paid on ocean freight based on Cenvat credit and cash refund under Section 142(3) read with Section 11B.

Analysis:
The judgment by the Appellate Tribunal CESTAT Ahmedabad, delivered by Hon'ble Member (Technical) Mr. Raju, addressed the issue of whether the appellant is entitled to a refund of service tax paid on ocean freight. The appellant claimed entitlement based on Cenvat credit of service tax paid on ocean freight, seeking cash refund under Section 142(3) read with Section 11B. The Tribunal considered the matter in light of a previous case involving Galaxy Poly Plast Industries, where the issue was remanded for further review. The Tribunal noted that the lower authorities had denied the refund claim on the grounds that cash refund of Cenvat credit of service tax paid on ocean freight was not admissible. Referring to a Division Bench's decision in the case of Bosch Electrical Drive India Private Limited vs. Commissioner of GST and Central Excise, Chennai, the Tribunal decided not to pass an order on the cash refund of Cenvat credit under Section 142(3) of the CGST Act, 2017. The Tribunal highlighted that the appellant's claim was based on the argument that they were entitled to a refund of service tax paid on ocean freight, distinct from the issue of the legality of the service tax levy itself, as per the Hon'ble Gujarat High Court judgment in the case of SAL Steels Limited. The Tribunal, following the precedent, remanded the matter to the original authority for further review, considering the aspects not examined previously regarding the levy of service tax on ocean freight and the relevant judicial decisions not available to the lower authorities during the initial consideration of the case.