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2023 (10) TMI 434 - AT - Service TaxRejection in cash of unutilized cenvat credit - requirement to reconsider the formula for prorating the cenvat credit pertaining to domestic turnover - rejection of credit taken on input services availed in the unregistered premises - input services - clearing and forwarding services - event management service - gardening services - tour operator services - packaging services - reversal of cenvat credit in respect of the refund rejected is beyond the jurisdiction - time limitation. HELD THAT:- The original authority has directed the respondent to debit / reverse the cenvat account to the tune of which has not been sanctioned. The respondent has already debited the amount in their cenvat account before filing the refund claim. The original authority ought not to have directed the respondent to reverse the credit again for the mere reason that the refund has not been sanctioned in cash. The Commissioner (Appeals) has correctly understood the matter - it can be seen that by the impugned order, the Commissioner (Appeals) has not sanctioned any amount as refund in cash. The respondent has been allowed to take recredit of the amount which has not been sanctioned to them as cash. This being so, the appeal filed by department alleging that credit availed by the respondent is ineligible for the reason that the premises is not registered and that the input services have no nexus with the output services is without any substance. The Hon’ble High Court in the case of COMMISSIONER OF SERVICE TAX-III, CHENNAI VERSUS CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL, CHENNAI & M/S. SCIOINSPIRE CONSULTING SERVICES (INDIA) PVT LTD, CHENNAI [2017 (4) TMI 943 - MADRAS HIGH COURT] had held that cenvat credit cannot be denied on the ground that premises is not registered. In the case of K LINE SHIP MANAGEMENT (INDIA) PVT. LTD. VERSUS COMMISSIONER OF SERVICE TAX, MUMBAI [2017 (7) TMI 412 - CESTAT MUMBAI] it was held that eligibility of cenvat credit cannot be questioned or determined at the time of granting refund of cenvat credit. Since the order passed by the Commissioner (Appeals) is only to avail recredit the contention of the Revenue with regard to limitation is also of no consequence. There are no merits in the appeals filed by the department. The appeals are dismissed.
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