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2017 (8) TMI 1686 - AT - Service TaxRejection of refund claims - exporter of services under the category of Information Technology Software Services & Design Services - rejection of refund claim only on the ground that appellant had not fulfilled condition No. 2(h) of Notification No. 27/2012-(NT) - HELD THAT:- It is found from the records that lower authorities have categorically reduced the findings that the appellant had filed refund claims on 10.01.2014 and has subsequently reversed/made the debit entry for the quarters in question, on 28.07.2014 - the lower authorities have misdirected themselves while recording a finding that the conditions in notification are not met at the threshold. In the case in hand, when it is a fact that the appellant is an exporter of services and eligible to avail Cenvat credit and utilised the services, there is no scope for the appellant to utilise Cenvat Credit so availed for any DTA clearance of services. The mandatory condition of notification of 2(h) of Notification No. 27/2012-(NT) of reversal of cenvat credit in the cenvat account, is a rectifiable error which could be and can be verified by the authorities before sanctioning of the refund. In the case in hand, there are no findings that the appellant had availed ineligible cenvat credit and that he has not exported the services. Appellant had fulfilled the mandatory requirement/condition of para 2(h) of said Notification No. 27/2012-CE(NT), albeit belatedly, the said non-compliance cannot be treated as a non-rectifiable lapse or non-fulfillment of condition of notification - Having rectified by debiting the amount, the appellant is eligible for refund of the amount. Appeal allowed - decided in favor of appellant.
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