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2018 (8) TMI 553 - AT - Service TaxCENAVT Credit - Reversal of 6 % in terms of Rule 6 - refund as per Section 102 of Finance Act, 2016 - scope of SCN - Held that:- This is not a case of normal availment of CENVAT credit knowingly that the output service is exempted. The appellant have legally and correctly availed the CENVAT credit as their output service was taxable during the period April 2015 to February 2016. Thereafter as per the mandate given under Section 102 of Finance Act, 2016, they became entitled for the refund. In order to process the refund, they were supposed to reverse the CENVAT credit attributed to the output service. In this exceptional case, the Commissioner (Appeals) should not have brought into a new ground of Rule 6 for denying the refund. However, the adjudicating authority had no occasion to verify the correctness of the reversal of credit attributed to the exempted output service - the adjudicating authority needs to verify the facts - appeal allowed by way of remand.
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