A Schulman Plastic India Pvt. Ltd. Vs Commissioner of C.E. & S.T. (CESTAT Ahmedabad)
Summary: The Customs, Excise & Service Tax Appellate Tribunal, Ahmedabad considered the appeal filed by M/s. A Schulman Plastic India Pvt Ltd against rejection of refund claims relating to Service Tax paid under reverse charge mechanism for the period prior to 01.07.2017.
During audit under Final Audit Report No. 25/2018-19, the appellant had paid Service Tax on reverse charge basis on Management, Technical Consultancy, Maintenance & Repair, Manpower Recruitment, commission, GTA and legal consultancy services amounting to Rs. 45,32,123/- for the period prior to 01.07.2017. The appellant had also paid Service Tax on reverse charge basis on ocean freight for April 2017 to June 2017 amounting to Rs. 13,97,310/-. These amounts were paid suo motu under Section 73(3) of the Finance Act, 1994, under which issuance of show cause notice and penalty was waived.
As the Service Tax was paid after 01.07.2017 although it related to the period before introduction of GST, the appellant contended that the amount was eligible as CENVAT credit under the CENVAT Credit Rules, 2004. Since the credit could not be utilised under the GST regime, the appellant filed refund claims under Section 142(3) of the CGST Act, 2017.
