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2019 (6) TMI 861 - AT - Service TaxRefund of CENVAT Credit - whether the opening balance of Cenvat credit, at the beginning of the relevant period, can be claimed as refund as per Rule 5 of the Rules, as prevalent during the relevant period and as to whether Cenvat can be denied on alleged technical defects, in the invoices? - Rule 5 of CCR - Interpretation of statute - N/N. 27/2012 dated 18.06.2012. HELD THAT:- The definition of ‘net Cenvat credit’ uses only one “,” before the word ‘relevant period’. Therefore, the word ‘relevant period’ should necessarily apply to both ‘net Cenvat credit’ as well as the rebate refers to in Rule 3 (5C). Moreover, the Revenue could successfully demonstrate that the appellants did not adhere to the time frame given in the amended Rule 5. Therefore, we find that the refund claims are not in order. The appellants have argued on the basis of various decisions cited by them and said that when substantial compliance is evident refunds should not be denied to the appellants, more so when 100% of the services were exported. The quasi-judicial authorities are not expected to traverse beyond the scope of established law and therefore, calculation of Net Cenvat Credit and thus eligible refund was in order. We find that the appellants have submitted that while deciding the refund claims, the lower authority has dis-allowed certain credits without issuing a proper SCN and without hearing the contentions of the appellants and some credits were not allowed on procedural issues. We find that such a denial is incorrect. It is not free for the authorities to deny Cenvat credit without giving an opportunity of being heard to appellants. Therefore, for this purpose, the issue requires to go back to the original authority for deciding the issue separately by following the principles of natural justice. The appeals allowed by way of remand, to the extent of re-determination of inadmissible Cenvat credit.
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