Virtusa Consulting Services Pvt. Ltd. Vs Commissioner of CGST Chennai Outer Commissionerate (CESTAT Chennai)
The appeals concern the rejection of refund claims filed by the appellant, a Special Economic Zone (SEZ) unit engaged in rendering software services. The appellant had paid service tax on certain specified services used for authorized operations and subsequently sought refunds under Notification No. 12/2013 dated 1 July 2013. As per the notification, SEZ units are entitled to receive services without payment of service tax for authorized operations. Alternatively, they may pay service tax and either claim a refund or avail Cenvat credit, provided there is no dual benefit.
The appellant stated that it had availed Cenvat credit only for some specified services and claimed refunds for the remaining services used in authorized operations. To support its claim that no dual benefit was taken, the appellant submitted a Chartered Accountant certificate asserting that refunds were claimed only for services where Cenvat credit had not been availed.
The department, however, contended that the appellant had not produced sufficient evidence to establish that it had not availed both Cenvat credit and refund on the same services. Accordingly, it was argued that the matter required verification and should be remanded to the adjudicating authority.
