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TMI Blog2022 (8) TMI 1143X X X X Extracts X X X X X X X X Extracts X X X X ..... itional provision has come into effect from 01.07.2017. It is also not in dispute that they had paid the service tax for the period from April 2017 to June 2017 belatedly i.e., on 02.05.2018, after pointing out the same through departmental audit. Thereafter, the assessee filed an application for refund. The appellant rejected the claim of refund made by the assessee on the premise that there is no provision in the new regime to allow such refund as input tax credit in GST/credit in Electronic cash ledger/ payment in cash. The assessee is entitled to avail cenvat credit of the service tax already paid, which fact was also admitted by the Revenue, but they were unable to claim, due to transitional provision has come into effect from 01.07 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al Excise Tariff Act, 1985. In the course of such business, they had received technical know-how / intellectual property right from foreign persons and paid royalty to them during the period from April 2016 to June 2017. For the said services received by them, they were liable to pay service tax under reverse charge basis, which was not paid by them originally. After pointing out the same in the departmental audit, they had paid the service tax liability of Rs.24,20,684/- along with interest at Rs.3,82,139/- on 02.05.2018. 2.2. The appellant further stated that though the assessee is entitled to avail cenvat credit, as per the Cenvat Credit Rules, 2004, consequent to the introduction of GST with effect from 01.07.2017, the relevant enact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s ordered by the learned Judge on 22.02.2022, by setting aside the rejection order and remanding the matter to the respondents for fresh consideration. Therefore, this writ appeal by the appellant / Revenue. 3.The learned standing counsel appearing for the appellant submitted that the assessee had not paid the appropriate service tax within the stipulated time and paid only in May 2018 after having noticed through departmental audit, thereby lost the opportunity of taking cenvat credit of the amount to be paid under reverse charge. Elaborating further, the learned counsel submitted that as the payment had been made belatedly, the assessee could not take the cenvat credit in the ST-3 returns within the stipulated period viz., 15.08.2017 a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ellant rejecting the claim of the assessee, and directed the authority to reconsider the matter under section 142(3) of the Act. Thus, according to the learned counsel, there is no requirement to quash the same. 5.Heard both sides and perused the materials available on record. 6.It is an admitted fact that the assessee is eligible to claim cenvat credit under the erstwhile Central Excise Act, prior to 30.06.2017, but they were unable to claim, due to transitional provision has come into effect from 01.07.2017. It is also not in dispute that they had paid the service tax for the period from April 2017 to June 2017 belatedly i.e., on 02.05.2018, after pointing out the same through departmental audit. Thereafter, the assessee filed an ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ications under section 142(3) of the CGST Act, 2017. (ii) While reconsidering the said applications, the claim made by the petitioners need not be considered for the purpose of refund of the claim made by them. However, the said claim made by the petitioners can very well be considered for the purpose of permitting the petitioners to carry forward the accrued credit to the electronic credit ledger of the GST regime. (iii) After considering the said applications, as indicated above, the necessary order shall be passed by the respondents within a period of six weeks from the date of receipt of a copy of this order. It is made clear that, before passing the orders as indicated above, an opportunity of being heard shall be given to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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