Kazakstancaspishelf India Pvt. Ltd. Vs Principal Commissioner of Customs (CESTAT Delhi)
Refund Claim Cannot Be Rejected Without Examining Double Payment of Service Tax and Eligibility of Credit in Refund Proceedings: CESTAT Delhi
The appellant is Indian subsidiary of a foreign entity. The foreign entity provided services to Oil India Limited. The appellant paid service tax on such services. Oil India also paid service tax under reverse charge basis on such services. Hence; the appellant filed refund claim. Refund of over Rs.4.4 crores was rejected. On appeal; appellate authority confirmed the same. Hence; appeal.
Hon’ble CESTAT, Delhi set aside the order and allowed the appeal. It notes: (i) the assistant commissioner had rejected the refund claim on the ground that the appellant not being a service provider; was not entitled to cenvat credit; (ii) the argument of the appellant that credit cannot be denied in refund proceedings needs to be examined; (iii) whether the appellant had paid entire amount in cash needs to be examined; (iv) revenues arguments on non challenge of ST-3 returns by placing reliance on ITC decision also needs to be evaluated; (v) accordingly; remands the matter back to the adjudicating authority to pass denovo order.
Argued by Adv. Bharat Raichandani i/b UBR Legal
