Kolkata Port Trust Ordered to Reimburse Rs.3.94 Crore for Service Tax; Cenvat Credit Granted Without Original Certificate.

The HC of Calcutta ordered Kolkata Port Trust to reimburse Rs.3,94,34,035 to the writ petitioner for service tax, contingent on providing the original discharge certificate. The Service Tax Department must grant Cenvat Credit for this amount, without requesting the original certificate from the petitioner. Both parties can pursue further claims in the appropriate forum after payment. The writ petition was disposed of, as no opposition affidavit was filed, allowing parties to explore additional legal remedies.

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Issues:
1. Reimbursement of service tax by Kolkata Port Trust to the writ petitioner.
2. Availability of Cenvat Credit for the paid service tax.
3. Legal remedies available to the parties after payment.

Analysis:
1. The High Court of Calcutta directed the Kolkata Port Trust to pay Rs.3,94,34,035 to the writ petitioner against 8 supplementary invoices raised for service tax reimbursement. The payment was ordered to be made within two weeks, contingent upon the writ petitioner providing the original discharge certificate issued by the service tax department. No further documents or security were to be demanded. Both parties were granted liberty to pursue any other claims they may have against each other before the appropriate forum after the payment is made.

2. The Service Tax Department was instructed to provide the necessary Cenvat Credit to the Kolkata Port Trust for the sum paid towards service tax. This credit was to be based on the supplementary invoices and the original discharge certificate issued by the Service Tax Department. The Court explicitly stated that the Service Tax Department should not request the original discharge certificate from the writ petitioner for any purpose.

3. As no affidavit in opposition was filed, the Court deemed the allegations to have been denied. Consequently, the writ petition (WP No.948 of 2016) was disposed of, allowing both parties to pursue their legal remedies for any other claims they may have against each other. The judgment provided a clear directive for the payment of service tax reimbursement, the availability of Cenvat Credit, and the subsequent legal options available to the parties involved.

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