Cenvat credit refund on ocean freight not barred by suppression-based exclusions; limited remand ordered for factual verification.

Refund of service tax paid suo motu on ocean freight was examined under the Cenvat Credit Rules, 2004, and the exclusion under Rule 9(1)(b) or Rule 9(1)(bb) was not found applicable because there was no demand notice or adjudication recording suppression of facts. As the factual documents and verification issues had not been examined, the refund claim required limited remand to the Adjudicating Authority for factual scrutiny and further processing.

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Issues: Whether the claim for refund of service tax paid on ocean freight as Cenvat credit was hit by Rule 9(1)(b) or Rule 9(1)(bb) of the Cenvat Credit Rules, 2004, and whether the matter required remand for factual verification.

Analysis: The claim was based on service tax paid suo motu on ocean freight. There was no demand notice or adjudication recording suppression of facts, and the invocation of the penal exclusion under Rule 9(1)(b) or Rule 9(1)(bb) on the basis of suppression was not supported. Since the dispute was confined to the legal issue and the factual documents and verification aspects had not been examined, further processing of the refund claim required limited remand.

Conclusion: The bar under Rule 9(1)(b) or Rule 9(1)(bb) was not attracted on the facts noticed, and the matter was remanded to the Adjudicating Authority for limited factual examination and processing of the refund claim.

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