TaxTMI 
TaxTMI 
2023 (1) TMI 392
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.... deposited the service tax as service tax was payable on accrued basis on raising of invoice. Thereafter, the conciliation of the accounts was done during the period October 2017 to December 2017 for the purpose of finalisation and filing of annual returns and/or periodical returns, the appellant found that although they raised the invoices and deposited the tax, but no actual services was provided to their clients. Accordingly, the appellant passed reverse entries in their books of accounts reversing the invoices raised alongwith the service tax. They, accordingly, issued credit notes to the clients and also refunded amount to the clients who had already paid though service was never provided to them. The appellant filed refund claim manua....
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....t notes, copy of the invoices and credit notes, reconciliation of service tax payable as per return and financial statement, also filed self certified copy of Annexure-A certifying that the amount of service tax refund claimed has not been passed on directly or indirectly to any other person. The appellant also certified that so far the invoices raised to business concerns, they had not accepted the invoice and as such there was no question of them taking any credit, and so far the individual consumers are concerned they were not entitled to take any service tax credit, appellant also enclosed copy of Chartered Accountant certificate, certifying that the amount refundable is in accordance with the books of accounts as per the records mainta....
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....ant have also claimed refund of Krishi Kalyan Cess (KKC) Rs. 65,799/- and Swachh Bharat Cess (SBC) Rs. 65,799/-. Further observed, as per returns for January 2017 to June 2017, Appellant have availed credit of KKC in the month of June 2017 and utilized the amount of KKC Rs. 9,28,343/- for payment of KKC liability in the month of June, 2017. There is restriction being credit of KKC and SBC can be utilised only for payment of KKC/SBC. Further observed that KKC & SBC are not being eligible under GST and transfer of such credit is also not allowed through TRAN-1 to GST regime. Thus, refund of KKC and SBC is not admissible and is liable for rejection. 5. Being aggrieved, the appellant preferred appeal before learned Commissioner (Appeals) who v....
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....the period of October to December 2017 and have also issued credit notes to the commercial concerns as well as to the individual customers. Further admittedly, appellant have also refunded the amount received from the customers who had already made payment for which no service was provided. Further, as the other business concerns on whom the invoice is raised had not accepted the invoice which was raised before providing service, they did not issue any debit note and there was no question of taking credit in their books under the circumstances. So far the individual customers are concerned, being not registered with the department, they are not entitled to take any Cenvat credit. Thus, the observations of court below that in absence of any ....