2026 (3) TMI 507

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....unutilized Cenvat Credit of Rs. 38,92,623/- in the first round of litigation and accepted grant of refund to the tune of Rs. 34,17,963/- is assailed before this Tribunal. 2. Fact of the case, in a nutshell, is that appellant has been engaged in providing services concerning Information Technology Software taxable under section 65 (105) (zzzze) of the Finance Act, 1994 to its clients outside India and those services were exported under Rule 6A of the Service Tax Rules 1994 entitling it to avail Cenvat Credit under Cenvat Credit Rules 2004 (CCR) and get refund of un-utilised credit as per Rule-5 of Cenvat Credit Rules 2004 (CCR) for the period from July to September 2014. Appellant sought for refund of Cenvat Credit of Rs. 38,92,623/- thro....

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....e effect that all issues relating to Cenvat Credit had to be determined in terms of provisions of the Cenvat Credit Rules except that Rule-6(2) of the VCES Rules 2013 prescribed that Cenvat Credit cannot be utilized for payment of tax dues under the scheme, which would mean that tax dues which are declared under the VCES Scheme has to be paid in cash and not through utilization/adjustment of Cenvat Credit but there is a clear noting in the answer to the said Question NO. 22 that admissibility of the Cenvat Credit and eligibility have to be dealt under Rule-9(1)(bb) and 9(1)(e) of the Cenvat Credit Rules 2004 that deals with supplementary invoices, bills or challans etc evidencing the payment of tax by the recipient and therefore such a find....

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....ed with by this Tribunal. 5. I have gone through the Appeal Paper Book, written note of submissions, relevant case laws placed on record on the issue and taken note of the submissions made by the adversaries. At the outset, it is to be placed on record that in respect of service tax, the VCES Scheme was introduced in 2013 to provide onetime amnesty to service tax defaulters and the primary objective of which was to encourage voluntary compliance, reduce litigation and expand the tax base that has been intended to assist those who failed to pay service tax, due to ignorance of law or other reasons, allowing them to pay their dues and avoid legal consequences, as reveals from its Statement of Objects and Reasons but the scheme has generate....

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.... the service tax dues declared by respondent have already been paid, the next step is whether the respondent is eligible for CENVAT credit in respect of said service tax paid. As per clarification given by the board in the circular cited by the Ld. Counsel for the respondent. The respondent was legally entitled for the CENVAT credit since CENVAT credit of the service tax paid on the reverse charge basis in respect of the input service. Any service tax paid on the input service whether under VCES 3/Page ST/10509-10510/2016 DB Scheme or otherwise the same is available as CENVAT Credit to the assessee. Once the CENVAT credit is legally admissible it is available either for utilization for payment of service tax/excise duty. In the present case....