2022 (10) TMI 1078 - AT - Service Tax

CESTAT remands service tax refund issue for review by original authority

AMOD STAMPING PVT LTD Versus C.C.E. & S.T. -VADODARA-I

AMOD STAMPING PVT LTD Versus C.C.E. & S.T. -VADODARA-I - TMI Issues Involved: 1. Entitlement for refund of service tax paid on ocean freight based on Cenvat credit and cash refund under Section 142(3) read with Section 11B.Analysis:The judgment by the Appellate Tribunal CESTAT Ahmedabad, delivered by Hon'ble Member (Technical) Mr. Raju, addressed the issue of whether the appellant is entitled to a refund of service tax paid on ocean freight. The appellant claimed entitlement based on Cenvat credit of service tax paid on ocean freight, seeking cash refund under Section 142(3) read with Section 11B. The Tribunal considered the matter in light of a previous case involving Galaxy Poly Plast Industries, where the issue was remanded for further review. The Tribunal noted that the lower authorities had denied the refund claim on the grounds that cash refund of Cenvat credit of service tax paid on ocean freight was not admissible. Referring to a Division Bench's decision in the case of Bosch Electrical Drive India Private Limited vs. Commissioner of GST and Central Excise, Chennai, the Tribunal decided not to pass an order on the cash refund of Cenvat credit under Section 142(3) of the CGST Act, 2017. The Tribunal highlighted that the appellant's claim was based on the argument that they were entitled to a refund of service tax paid on ocean freight, distinct from the issue of the legality of the service tax levy itself, as per the Hon'ble Gujarat High Court judgment in the case of SAL Steels Limited. The Tribunal, following the precedent, remanded the matter to the original authority for further review, considering the aspects not examined previously regarding the levy of service tax on ocean freight and the relevant judicial decisions not available to the lower authorities during the initial consideration of the case.