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Learned counsel explains that the Domestic Tariff Area (DTA) unit having paid the service tax on reverse charge mechanism on behalf of SEZ unit of the company, the portion of such tax attributable to the SEZ is denied by the adjudicating authority to avail CENVAT credit thereof.
The taxable services availed by the appellant were to occasion the exports. There appears nexus between export and the service so availed which cannot be ruled out by the authorities below. Once that is present, denial of the refund of the accumulated CENVAT credit to the exporter is unreasonable.
What the learned counsel says is that its right not being abrogated by law and also in absence of any provision in law to deny refund, the unutilised credit of AED is refundable. Following the ratio laid down by the Hon ble High Court of Andhra Pradesh in the aforesaid judgment, appellant is entitled to refund. When law itself does not deny grant of refund of unutilised credit there shall be no question of limitation to apply.
Learned counsel says that maintenance of health of the factory workers where they work in hazardous situation is an essentiality both under statute as well as requirement of the conditions of the employment.
Learned counsel says that pollution control being necessity of law appellant has complied to that law incurring certain expenditure which have suffered service tax. Inadmissibility of CENVAT credit in respect of the service tax suffered having direct relation and intimate connection with the manufacture to prevent pollution, shall be mis-carriage of justice.
In View of pressure from all quarters Finance Mister Arun Jaitley has withdrawn the Proposal to Tax 60% of EPF/Superannuation Fund Proposed in Union Budget 2016 and which was to come into effect from 01.04.2016.
