2023 (9) TMI 1440 - AT - Service Tax

Refund of accumulated CENVAT Credit under Rule 5 of Cenvat Credit Rules 2004 - port service - input service - HELD THAT - The ld. Commissioner (Appeals) referring to the judgments of this Tribunal in the cases of COMMISSIONER OF CENTRAL EXCISE RAJKOT VERSUS ROLEX RINGS (P.) LTD. 2008 (2) TMI 295 - CESTAT AHMEDABAD and CCE RAJKOT VERSUS ADANI PHARMACHEM P. LTD. ORS. 2008 (7) TMI 102 - CESTAT AHMEDABAD held that port service is an input service accordingly eligible for refund of the credit availed on the said service - there are no discrepancy in the said order of ld. Commissioner (Appeals). The services rendered at the port has been consistently held as an input service within the definition of input service as per Rule 2(l) of Cenvat Credit Rules 2004 port being the place of removal in case export of goods. The order of the ld. Commissioner (Appeals) is upheld and the appeal filed by the Revenue is dismissed.

Summary

Issues involved:
The appeal filed by the Revenue against the rejection of a refund claim of accumulated CENVAT Credit under Rule 5 of Cenvat Credit Rules, 2004.

Summary:

Issue 1: Refund claim rejection and subsequent appeals
The respondent filed a refund claim of Rs.2,55,77,825/- for accumulated CENVAT Credit, which was initially rejected by the adjudicating authority. Upon appeal, the case was remanded for re-adjudication. The respondent was allowed a refund claim of Rs. 1,75,00,715/- but Rs. 80,77,109/- was disallowed. The Commissioner (Appeals) allowed the appeal, leading to the Revenue filing the present appeal.

Issue 2: Eligibility of 'port service' as an input service
The Tribunal considered the orders of the adjudicating authority and the Commissioner (Appeals) regarding the eligibility of 'port service' as an input service for refund of credit. Citing relevant judgments, the Commissioner (Appeals) held that 'port service' qualifies as an input service under Rule 2(l) of Cenvat Credit Rules, 2004, especially in the context of goods export. The Tribunal upheld the Commissioner's decision, dismissing the Revenue's appeal.

The judgment by the Appellate Tribunal CESTAT BANGALORE addressed the issues of refund claim rejection and the eligibility of 'port service' as an input service for CENVAT Credit refund. The Tribunal affirmed the Commissioner (Appeals) decision, emphasizing the consistent classification of port services as input services in relevant legal provisions and precedents.