2024 (10) TMI 625

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....rvices which were subjected to payment of tax at the hands of receiver under Reverse Charge Mechanism RCM, they were depositing the same and claiming credit of the tax so paid. In the instant case the Appellant deposited service tax under RCM on GTA Services amounting to Rs.9,08,906/- for the month of June, 2017 in the month of July, 2017 and November, 2017 i.e. 04.07.2017 and 06.11.2017 and on Manpower Services amounting to Rs.5,30,303/- for the month of June, 2017 in the months of July, 2017 i.e. on 04.07.2017. Thus, total amount of tax paid was to the tune of Rs.14,39,209/-. That however since w.e.f. 01.07.2017 the Appellant migrated to the GST regime and were no longer governed under the Central Excise & Service Tax provisions, they cou....

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.... of return of June, 2017 was transitioned vide Form GST TRAN-1 and they could not claim the credit of the said amount as while migrating to GST Regime. They were allowed to carry forward only the closing balance of credit shown in ER-1 return for the month of June, 2017. 4. Ld. Advocate adverted to Repeal and Savings Provision in Section 174(2) of the GST Act which reads as under:- "The repeal of the said Acts and the amendment of the Finance Act, 1994 (32 of 1994) (hereafter referred to as "such amendment" or "amended Act", as the case may be) to the extent mentioned in the sub-section (1) or section 173 shall not : - (a) revive anything not in force or existing at the time of such amendment or repeal; or (b) ....

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....ayment of tax made voluntarily by the Appellant. The Appellant had paid the tax along with interest also. When the liability of tax has been accepted by the Department, they cannot reject the claim of refund of credit on the same. 8. From the facts narrated above, it is brought out that Appellant has paid the service tax voluntarily under self-assessment. The tax is paid under reverse charge mechanism for the services received by them from the service providers. On perusal of the OIO, it is seen that the Adjudicating Authority has denied refund of credit holding that the service tax has been paid voluntarily and also that no credit is available in GST regime. Section 174(2) of the GST Act has already been reproduced as above. It says tha....

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.... erstwhile law. It is stated that therein that such claims have to be disposed in accordance with the provisions of existing law and any amount eventually accruing has to be paid in cash. 11. In the present case, there is no allegation that the credit is not eligible to the Appellant. It is merely stated that tax has been paid voluntarily and therefore credit is not available under the GST regime. Though credit is not available as Input Tax Credit under GST law, the credit under the erstwhile Cenvat Credit Rules is eligible to the Appellant. Such credit has to be processed under Section 142(3) of CGST Act, 2017 and refunded in cash to the assessee. 12. Section 142(3) is the transitional provision for claim of refund after the introduc....