Dhyan Networks and Technologies Pvt. Ltd Vs Commissioner of G.S.T. and Central Excise (CESTAT Chennai)
Chennai: The Chennai bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has ruled that a taxpayer is entitled to a cash refund of CENVAT credit that was initially re-credited before the implementation of the Goods and Services Tax (GST) regime, but could not be utilized afterwards due to the discontinuation of the CENVAT credit mechanism. The tribunal found that directing the assessee to merely take re-credit had become impractical after the advent of GST and ordered the refund in cash, citing provisions of the Central Goods and Services Tax (CGST) Act, 2017, and a precedent set by the Bangalore bench of CESTAT.
The case involved M/s. Dhyan Networks and Technologies Pvt. Ltd., a company engaged in providing Business Support Services to foreign clients. The company, registered with the tax department, had filed a refund claim amounting to ₹6,28,141 for the period from July 2014 to September 2014. The claim was made under Rule 5 of the CENVAT Credit Rules, 2004, read with Notification No. 27/2012-C.E (N.T.) dated June 18, 2012, which governs the refund of unutilized CENVAT credit to exporters of services.
