2023 (3) TMI 446 - AT - Service Tax

Refund of unutilised CENVAT Credit - exporter of services - rejection of refund on the ground that credit is not reflected in the ST-3 return - HELD THAT:- From the perusal of the order of tribunal while remanding the matter it is evident that tribunal has held that the appellant is eligible to avail the Cenvat Credit of the input services for the period prior to 14.03.2006. It is not even the case of revenue that the CENVAT Credit is not available in respect of these services however said credit has not been reflected in the return filed by the appellant during the period 2005-06 or as opening balance in the ST-3 return filed for the period April to September 2006.

It is evident that ST-3 return has not been mentioned as the document relevant for the purpose of considering the admissibility of the credit and the refund. Accordingly rejection of refund claim by referring to the ST-3 return, cannot be justified, provided the fact of the admissibility and availability of the credit claimed as refund can be determined from the records maintained under the Central Excise Rules, 2002, the CENVAT Credit Rules, 2004, or the Service Tax Rules, 1994.

Reliance placed in the case of PRINCIPAL COMMISSIONER OF SERVICE-TAX VERSUS BROADCOM INDIA RESEARCH PVT. LTD. [2016 (6) TMI 877 - KARNATAKA HIGH COURT] where it was held that the relevant documents on the basis of which credit was taken, nature of service and its nexus and utilization of the service for there was some mistake in the ST-3 returns, substantive right of assessee for refund cannot be rejected.

Thus, the refund claim could not have been denied for this reason. It is stated/ unstated policy which govern the exports of goods or services across the globe that the local taxes should not be exported along with the goods or services exported.

Appeal allowed.