Bajaj Carpet Industries Ltd. Vs Commissioner of Central Excise (CESTAT Allahabad)
CESTAT Allahabad held that claim of cash refund of service tax paid under RCM not admissible since CENVAT Credit was never claimed and transitional provisions under GST was not complied.
Facts- The Appellant is engaged in the manufacture of carpets and receives several inputs, input services and capital goods for this purpose. During June 2017, the Appellant received Manpower supply agency services Goods transport agency services, Works contract services and Legal consultancy services on which service tax amounting to Rs. 4,53,986/- was paid by it under RCM on 29.09.2017.
Due to payment of service tax under RCM on 29.09.2017, the Appellant could not reflect the Cenvat credit amounting to Rs.4,53,986/- in its ST-3 return filed for the period April to June 2017.
Since the Appellant was otherwise eligible to avail Cenvat credit on the above service tax paid by it under RCM and the same could not be carried forward due to introduction of GST regime w.e.f. 01.07.2017, the Appellant filed an application dated 03.05.2018 claiming the refund of amount of Rs. 4,53,986/- in cash u/s. 11B of Central Excise Act, 1944 read with Section 142(3) of the Central Goods and Services Tax Act, 2017.
