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2024 (5) TMI 523 - CESTAT HYDERABADRefund of service tax paid on Reverse Charge Mechanism - It is the case of the Department that payment of service tax on RCM, availment of CENVAT credit of the same and refund of unutilized credit under Rule 5 are different and are governed by different provisions of law - HELD THAT:- On going through the records of the case, it appears that having paid the applicable service tax on being pointed out by the audit, the appellants have filed the refund claim. If the appellants are seeking refund of service tax under Section 11B of Central Excise Act, 1944, they have to satisfy the conditions of Section 11B which provides for refund of any duty. It is not clear as to why the appellants have claimed refund of duty; it is not duty which is paid in excess or under mistaken notion of law. Any claim of refund should have some basis for claiming of the same. The claim of the appellants appears to be that they have paid service tax on Reverse Charge Mechanism; they are eligible to avail CENVAT credit of the same and as they are not in a position to avail and utilize the credit, they are seeking refund under Section 142(3)of CGST Act, 2017. From the records of the case, it is seen that the case does not fall under the category of refund under Rule 5, as a refund claim for the relevant quarter has already been filed and availed by the appellant, the fact of which is not denied by them. It is found that the appellant is attempting to compress various provisions relating to refund under Central Excise Act, 1944; CENVAT Credit Rules 2004 and CGST Act 2017. The provisions of law do not permit the same. It was for the appellant to pay the applicable service tax in time; to avail CENVAT credit of the same and claim refund under the provisions of Rule 5 as the appellants are engaged in export. The appellants have paid duty on being pointed out after the implementation of GST. Thus, their claim of refund of unutilized credit has no merit. As the service tax cannot be held to have been paid without sanction of law, the appellants are also not eligible for refund of service tax as such. The appeal is rejected.
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