TaxTMI 
TaxTMI 
2022 (12) TMI 137
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....s permissible, was availed and, owing to absence of domestic dealings, was constrained to opt for monetisation of such credit attributable to services deployed for undertaking export of services during the relevant quarter as provided for in rule 5 of CENVAT Credit Rules, 2004. Their application for refund of Rs. 69,09,322 and Rs. 37,08,888 on 6th January 2016 and 30th March 2016 respectively for the first two quarters of 2015 and of Rs. 19,04,374 on 2nd January 2017 for the first quarter of 2016 were, after issue of notice of deficiency, adjudicated to restrict evaluation of claim to Rs.23,10,232, Rs. 9,04,049 and Rs. 19,04,374 respectively only to have that cumulative amount of Rs. 51,18,655 also rejected. 2. It would appear from the records that the appellant was not aggrieved by the curtailment of credit available for monetizing but only by the rejection of the truncated eligibility; the consummation of the proceedings in appeal thereafter, uncontested by both sides, with order of remand to the original authority for re-computation of the refund amount was followed up, strangely enough, with a fresh claim for the restricted amount on 11th October 2018 instead of leaving it t....
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....nsel along with ascertainment of sufficiency of documentary evidence for sanction of the refund and our unwillingness to dignify the other grounds is deliberately intentional. 5. According to Learned Counsel, the issue stands resolved in their favour by the decision of the Tribunal in Silicon Image India Research & Development Private Limited v. Commissioner of Central Excise & Service Tax, Hyderabad (MANU /CH/0189/2017] and in BA Continuum India Pvt Ltd v. Commissioner of Service Tax-II, Mumbai [final order no. A/86656-86667/2018 dated 7th March 2018 in appeal no. ST/85693-85694/2015, 85485-85494/2018 against orders-in-appeal no. PD/842-843/ST-II/2014 dated 22nd December 2014 and no. PK/207, 316, 315, 215, 314, 313, 214, 212, 211, 213/ME/2017 of Commissioner of Service Tax (Appeals), Mumbai-II] thus nullifying the relevance of the finding in the impugned order. Learned Authorised Representative drew our attention to the specifics of the several conditions subject to which only the refund of credit is to be released under rule 5 of CENVAT Credit Rules, 2004. 6. In the light of the decisions of the Tribunal as cited by Learned Counsel, it would appear that the mere failure to ....
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....e of the subsequent proceedings, including the impugned order, for not being limited to the restrictive nature of the remand ordered therein. At this stage, we take note, too, that, in the absence of appeal by either side against the said remand order, the terms therein is the framework within which the processing of the claim for refund and all appellate decisions thereafter were to be restricted. That the appellant chose to file a fresh claim of refund is another matter altogether as this appeal confines us to the impugned order arising from the remand. 8. The remand order states, in no uncertain terms, that '6...... From the above, it can be observed that a person exporting goods and services simultaneously, may submit two refund claims one in respect of course exported and other in respect of the export of services every quarter. 6.1 In the instant case, I find that the appellant had exported the goods and claimed refund of input services which are used in the process of manufacturing the exported goods. Further, the appellant also claims that they have claim refund of Cenvat availed on input services used for export of output services i.e. bagging services....
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....dicating authority. Held Accordingly., and on the third, and last, of the issues, viz., on submission of proof of having debited the claimed amount in the CENVAT credit account, thus '8. Further, the adjudicating authority has also observed that the appellant failed to proof of debit entry of refund amount. However, I find that the appellant contended that the appellant submitted Cenvat register for the relevant period which cleared reflects the debit entry of refund amount. I find that the condition/limitation prescribed under para 2(h) is the basic condition to be fulfilled which is also stipulated in Form A and Annexure A-I to the impugned Notification read with Rule 5 of the Cenvat Credit Rules, 2004. The refund cannot be claimed without debiting the amount. However, in the present case, I find that the appellant has submitted the copy of Cenvat register and the adjudicating authority to verify the proof of debit entry before sanctioning the refund claim. Held Accordingly.' 9. From the context of the remand order on non-conformity with the pre-requisites of 'export of service' in Service Tax Rules, 1994 as held, initially, by the original authority, we take note ....
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....the claim of refund had been preferred reflects writing off of the entire balance at one go after inclusion in the closing balance of the previous period and, premising on the proposition of resultant compliance, the appellant has made so bold as to allege deficiency in discharge of statutory responsibility by the lower authorities. We find ourselves unable to concur with this proposition of accounting neutrality that may, and only in specific circumstances to be ascertained by scrutiny of primary records, be in harmony with the intent of the said condition requiring debit in the CENVAT credit account and not as a general rule. 11. Ideally, credit should be reversed as and when export takes place; however, with eligibility for refund arising only upon receipt of proceeds of export and the scheme having provided for filing of claim within a year thereafter, the dilution of ideal by shift to the quarter in which the claim is preferred is acceptable approximation. Therefore, the submission of the appellant would meet the test of sufficiency only by evincing continuous availability of such balance from the date of filing of the claim for refund till the date on which the opening bal....