Non-registration cannot bar refund of unutilised input tax credit when service tax liability does not exist.

Non-registration by a service provider not liable to pay service tax was held not to defeat a refund claim for unutilised input service tax credit used in export of services. Registration under the governing rule was treated as a procedural requirement applicable to assessees liable to pay service tax, not as a substantive for refund where the claimant sought only reimbursement of accumulated credit. As the refund period predated registration and the entity was otherwise outside the tax-liability net, non-registration could not be used to deny the refund. The refund order was therefore maintained and the appeal rejected.

---

---

Issues: Whether non-registration by a service provider, who was not liable to pay service tax, could be treated as a ground to deny refund of unutilized credit relating to export of services.

Analysis: The refund claim arose from input service tax credit used in relation to export of services. The denial was based on the fact that registration had been obtained later, though the refund period predated such registration. The governing rule required registration only of assessees liable to pay service tax. Since the respondents were not liable to pay service tax and were only seeking refund of unutilized credit, registration was treated as a procedural requirement for maintenance of accounts and compliance, not as a substantive condition for refund.

Conclusion: Non-registration did not bar the refund claim, and the order allowing refund called for no interference. The appeal was rejected.

---