Just a moment...

Report
FeedbackReport
×

By creating an account you can:

Logo TaxTMI
>
Feedback/Report an Error
Email :
Please provide your email address so we can follow up on your feedback.
Category :
Description :
Min 15 characters0/2000
Add to...
You have not created any category. Kindly create one to bookmark this item!
Create New Category
Hide
Title :
Description :
+ Post an Article
Post a New Article
Title :
0/200 char
Description :
Max 0 char
Category :
Co Author :

In case of Co-Author, You may provide Username as per TMI records

Delete Reply

Are you sure you want to delete your reply beginning with '' ?

Delete Issue

Are you sure you want to delete your Issue titled: '' ?

Articles

Back

All Articles

Advanced Search
Reset Filters
Search By:
Search by Text :
Press 'Enter' to add multiple search terms
Select Date:
FromTo
Category :
- 0 - Views

Refund of CENVAT credit pertaining to the period prior to registration cannot be denied

Date 05 Jun 2023
Written By
Denial of CENVAT credit for unregistered premises is unjustified; registration not mandatory under Section 11B.
The CESTAT, Chennai ruled that denial of CENVAT credit due to non-registration of premises is unjustified under Section 11B of the Central Excise Act, 1944. The case involved a company providing advertising services to foreign clients, which filed for a refund of CENVAT credit for the period before registration. The Assistant Commissioner initially rejected the refund claims, citing non-registration and procedural lapses. However, the tribunal held that registration is not mandatory for availing input tax credit, and credit cannot be denied if substantive conditions, such as payment of tax and receipt of service, are met. - (AI Summary)

The CESTAT, Chennai in COMMISSIONER OF SERVICE TAX, CHENNAI VERSUS M/S. AD2PRO GLOBAL CREATIVE SOLUTIONS PVT. LTD.  - 2023 (5) TMI 1131 - CESTAT CHENNAI has held that, denial of CENVAT credit for non-registration of premises is not justified as per Section 11B of the Central Excise Act, 1944, (“the CE Act”). Further held that, when conditions like payment of tax and receipt of service are satisfied, in such case credit cannot be denied on the basis that the credit was availed few days before the payment of tax.

Facts:

M/s. Ad2Pro Global Creative Solutions Pvt. Ltd. (formerly known as M/s. Ad2Pro media Solution Pvt. Ltd.) (“the Respondent”) is engaged in providing the Advertising services to their foreign clients.

The Respondent filed refund claims under Rule 5 of the CENVAT Credit Rules, 2004 read with Notification No. 27/2012-Central Excise (NT) dated June 18, 2012, for the period October 2012 to June 2013.

The Assistant Commissioner of Service Tax, Service Tax-I, Division-III, Chennai vide Orders-in-Originals namely, 01/2015(R) dated April 09, 2015, 15/2015(R) dated August 13, 2015 and 57/2015(R) dated November 06, 2015 ("the OIOs”) rejected refund claims partly on the ground that the Respondent had not submitted the documents within the limitation period of one year as per Section 11B of the CE Act and the Respondent has availed the CENVAT credit on certain invoices before the payment of service tax and due to non-registration of premises.

Aggrieved by the OIOs, the Respondent filed an appeal before the Commissioner of Service Tax, Service Tax-II Commissionerate, who vide Order-in-Appeal 534, 535 & 536/2016 (STA-I) dated September 01, 2016 (“the Impugned OIA”) allowed the refund which was rejected by the Assistant Commissioner.

Being aggrieved, the Revenue Department ("the Appellant”) filed this appeal, contending that the registration is a prerequisite for availing any substantial benefits like CENVAT Credit and the Respondent has failed to take registration thus, the refund of CENVAT accumulated prior to registration should not be allowed. Further contended that, the Respondent has availed refund of amount of tax paid prior to the period for which the refund claim is filed, thus the Respondent is not entitled to the refund amount.

Issues:

  1. Whether the Respondent can claim refund of CENVAT credit without registration of its premises
  2. Whether the Respondent can avail CENVAT credit before the payment of tax?

Held:

The CESTAT, Chennai in COMMISSIONER OF SERVICE TAX, CHENNAI VERSUS M/S. AD2PRO GLOBAL CREATIVE SOLUTIONS PVT. LTD.  - 2023 (5) TMI 1131 - CESTAT CHENNAI held as under:

(Author can be reached at info@a2ztaxcorp.com)

0 answers
Sort by

Old Query - New Comments are closed.

Hide

No Replies are present for this Article

Recent Articles