Service Tax paid on Ocean Freight for pre GST period, now can take input tax credit or apply refund?

[Dinesh Ghatkar]

Dear Sir/madam,

We have paid Service Tax on Ocean Freight for pre-gst period after audit finding (EA-2000),

but now in GST regime we can not take ITC of same, so we have applied for refund, but deptt refuse the application, on basis of we have paid Service tax of finding of Audit not willingly. hence we can not take credit not refund.

Please suggest any solution.

Thanks,

Dinesh

[KASTURI SETHI]

You must fight legally. You will get relief through Appellate channel.

[Dinesh Ghatkar]

Sir,

Deptt issue SCN and refuse under Rule 9(bb), plz suggest any circular/notification/rule under which we can fight legally,

Please help.

regards,

Dinesh

[Himansu Sekhar]

Please refer Sec. 142 (8a)

(8) (a) where in pursuance of an assessment or adjudication proceedings instituted, whether before, on or after the appointed day, under the existing law, any amount of tax, interest, fine or penalty becomes recoverable from the person, the same shall, unless recovered under the existing law, be recovered as an arrear of tax under this Act and the amount so recovered shall not be admissible as input tax credit under this Act;

The credit is not admissible

[Ganeshan Kalyani]

I am also of the view that refiund should be given.

[DR.MARIAPPAN GOVINDARAJAN]

Section 142(8)(b) of CGST Act, 2017 provides that where in pursuance of an assessment or adjudication proceedings instituted, whether before, on or after the appointed day, under the existing law, any amount of tax, interest, fine or penalty becomes refundable to the taxable person, the same shall be refunded to him in cash under the said law, notwithstanding anything to the contrary contained in the said law other than the provisions of sub-section (2) of section 11B of the Central Excise Act, 1944 (1 of 1944.) and the amount rejected, if any, shall not be admissible as input tax credit under this Act.

You can claim refund if it is refundable.

[Ganeshan Kalyani]

Yes, the transition provision as reproduced by my colleague expert support the view.

[Rajalakshmi Kesavan]

I am also facing the same problem. Department also collected excess SBC and KKC. Instead of charging .05 % charged .5%.

How can I claim refund of service tax and excess cess paid.

Please do the needful.

Regards

Rajalakshmi

AI Summary

Input tax credit denial on pre-GST ocean freight can be challenged; transitional refund provisions may permit recovery.
Payment of service tax on ocean freight after audit triggers a transitional issue: amounts treated as recoverable under assessment or adjudication are not admissible as input tax credit under the CGST transitional bar, whereas amounts established as refundable under prior law may be refunded in cash under transitional provisions.