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2019 (10) TMI 1148 - AT - Service TaxRefund of service tax remaining unutilized - rejection of refund only on the ground that the appellant has not availed cenvat credit amounting to ₹ 35,41,988/- in their ST-3 returns - can the non-disclosure or delay in disclosure in ST-3 returns, the assessee looses his right to claim cenvat credit or not? - HELD THAT:- After going through the various conditions set out in the appendix to the N/N. 5/2006 issued under Rule 5 of Cenvat Credit Rules, 2004 and Rule 4 and Rule 9 of Cenvat Credit Rules, the appellant has filed all the necessary documents for claiming the cenvat credit viz. invoices, books of accounts, cenvat credit register which are required as per the various Rules and the Notification to claim cenvat credit but inadvertently he has failed to disclose the same in the ST-3 return which is only a procedural infraction. Under the Notification as well as under the Rule, it has not been categorically provided that non-disclosure of cenvat credit in the ST-3 return will disentitle the assessee from claiming the cenvat credit if he is otherwise entitled to. Further, the cenvat credit is a beneficial legislation and it should be construed liberally so as to upheld the letter and spirit of such beneficial piece of legislation and a narrow interpretation would read down the benefit given by the legislature and defeat the very purpose of enacting of such beneficial legislation. Therefore, the denial of the refund only on the basis of non-disclosure of the cenvat credit in ST-3 return is not legally sustainable and therefore, the rejection of refund on this ground is set aside. The Commissioner (Appeals) in the impugned order has observed that the appellants have not submitted any documents to prove their contention that they have rightly availed the cenvat credit. It appears that both the authorities have not examined all the documents which have been filed by the appellant in support of their refund claim - Matter requires re-examination - appeal allowed by way of remand.
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