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2014 (12) TMI 784 - AT - Service TaxRevision of service tax return after 90 days to avail and utilize cenvat credit - refund claim filed for claiming service tax paid in cash - Held that:- Service tax liability was discharged by the appellants in the month of October, 2009 and S.T.-3 return was filed on 24-4-2009. At that particular point of time, their CENVAT account was nil. Subsequently, the entries made in the CENVAT account was checked by them and certain mistakes were detected, resulting in availability of CENVAT credit. They subsequently sought revision of the same on 21-12-2011, i.e., after a period of 2 years and 8 months which according to the lower authorities was not in accordance with law inasmuch as Rule 7B of the Service Tax Rules, 1994 allows any revision to correct a mistake or omission within a period of 90 days of the filing of such return. Though the correction of entries in the CENVAT account is not the subject matter of the present appeal, but the same are inter-connected and inter-related to the issue of refund. Appellants having paid the duty through cash, at the relevant time and having duly reflected the same in their S.T.-3 return, has to be treated as the correct payment of duty. Subsequently, correction of CENVAT account resulting in availability of CENVAT credit cannot be held to be a ground for refund of the cash deposit and acceptance of the tax through cash. Even the fact of correction of entries in CENVAT account does not stand accepted by the Revenue. I find no justification for refund of the cash deposit, which were, when made, were correct. No justifiable reason for grant of refund of service tax paid in cash. However, as the appellants have also paid the service tax again through CENVAT credit, they are entitled to the correction of entries, by correcting the second time reversal in their CENVAT account. - Decided against assessee.
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