Revenue Cannot Challenge EOU Refunds Through SCNs Without First Revising Orders Under Section 84

The CESTAT dismissed Revenue's appeal against refund granted to a 100% EOU. The Tribunal held that Revenue improperly issued SCNs under Section 73 without first revising the refund orders under Section 84, which was the mandatory procedure per the Delhi HC ruling in BT India. The Tribunal determined that questioning the nexus between input and output services during refund proceedings was improper, as eligibility for credit must be determined separately before refund claims. Additionally, procedural issues like non-production of original FIRCs or invoice discrepancies should not prevent substantive benefits. The extended period of limitation was invalid as SCNs were issued beyond the two-year limitation period prescribed under Section 84. .....

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