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2024 (1) TMI 1118 - AT - Service TaxRefund claim of unutilized cenvat credit - manufacture of diamonds which were exempted from central excise duty - export of goods without bond or letter of undertaking - neither any show cause notice was issued nor an adjudication process was carried out - violation of principles of natural justice - HELD THAT:- In the present case the adjudicating authority though given some observation but held that the refund claim is not admissible. However, the refund claim was returned back to the appellant, this approach of the Assistant Commissioner is clear in violation of principle of natural justice in as much as neither any show cause notice was issued nor an adjudication process was carried out. From the impugned order passed by the learned Commissioner (Appeals), it is found that learned commissioner appeal has observed that the appellant have taken Cenvat Credit without having registration. In this regard, it is found that availment of Cenvat Credit and / or for refund under Rule 5 of Cenvat Credit Rules registration is not mandatory as per Well Known Polyesters Ltd. Vs. Commissioner of C. Ex., Vapi [2011 (1) TMI 664 - CESTAT, AHMEDABAD] - In view of the above judgment it is settled that Cenvat Credit and /or refund thereof cannot be denied merely because the claimant has not taken the registration of Service Tax/ Central Excise. The other issue dealt with by the Commissioner (Appeals) is that the refund of input duty /input service tax when appellant’s goods which was exported is exempted from Central Excise Duty and Service Tax and the export of the goods was made without bond /LUT - this issue is also settled in various Judgments like The Commissioner of Central Excise Drish Shoes Limited [2010 (5) TMI 334 - HIMACHAL PRADESH HIGH COURT] and Well Known Polyesters Ltd. Vs. Commissioner of C. Ex., Vapi [2011 (1) TMI 664 - CESTAT, AHMEDABAD]. In view of the above Judgments given by this Tribunal as well as various High Courts, it is settled legal position that even though manufactured goods/ output services is exempted, refund of Service Tax against export of the same cannot be denied. Therefore, in the present case denial of refund claim on the ground that the goods exported is exempted is not sustainable. From the above discussion which is supported by various Judgments - denial of refund, on the ground that the appellant did not possess the registration and the goods exported is exempted, is not sustained. Having held as above since, the Adjudicating Authority has not verified refund documents related thereto, the matter needs to be remanded for reprocessing refund only for limited purpose of verification of documents - appeal allowed by way of remand.
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