Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2014 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (10) TMI 139 - AT - Service TaxRejection of refund claim - adjustment of unconfirmed demand with refund - Held that:- while confirmed demand can be adjusted from the amount of refund, there is no provision to adjust unconfirmed demand from the amount of refund. It is seen that there has been no show cause notice given to the appellants for showing cause as to why the cenvat credit amount of ₹ 11,18,182 (adjusted from the amount of refund sanctioned) was inadmissible to them and how the same was recoverable under what provision of law and how it was not hit by time bar inspite of having been taken in the year 2005-06. Even if the corrigendum issued on 17.07.2007 is attempted to be treated as a show cause notice, the said corrigendum falls fatally short of the requirement of a notice under Section 73 of the Finance Act, 1994 inasmuch as the said corrigendum does not even mention Section 73 ibid anywhere at all and it also does not contain any grounds to allege as to how the recovery, even if the said credit was held to be inadmissible, was not hit by time bar. Indeed the said corrigendum nowhere requires the appellants to show cause as to why the said amount should not be held inadmissible and why / how the same is recoverable without being hit by time bar. It merely stated that the said amount appeared to be not admissible to them and then straightaway called upon the appellants to show cause as to why the refund claim should not be rejected to the extent of ₹ 11,18,182 As a matter of fact, it has been sanctioned 100% inasmuch as the refund sanctioned is ₹ 11,79,720/-. Having sanctioned the full amount, there was no legal authority to adjust the amount of ₹ 11,18,182/- as the same cannot be held to be a confirmed demand for the reasons recorded earlier. - Decided in favour of assessee.
|