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2019 (2) TMI 685 - AT - Service TaxRefund of accumulated CENVAT Credit - surrender of service tax registration - export of services - Rule 5 of Cenvat Credit Rules, 2004 read with Section 11B of Central Excise Act, 1944 - Held that:- The term “Total turnover” used in the above formula includes the sum total value of all excisable goods cleared during the relevant period. It doesn’t restrict the inclusion of value of the excisable goods exported, per se. Sub-rule (2) deals with a situation where duty drawback is allowed and further lays down that in such a situation, credit could not be refunded. Therefore, it is clear from the above that Rule 5 facilitates the refund of Cenvat credit not merely of the excisable goods exported and therefore to say that Rule 5 provides for refund of un-utilized Cenvat only in the cases of export of service is incorrect. Accepting this interpretation of the Commissioner (Appeals) would lead to serious anomaly, which cannot be the intention of the legislation. Admittedly, the appellant has a huge credit which is now lying with the Revenue; the appellant has surrendered its Service Tax Registration and they have also paid the service tax liability as on the last date of their business. The law cannot, therefore, lead to a situation where a bonafide tax payer’s amount could be denied and withheld, for no fault of his. Further, in such a situation a bonafide assessee cannot be left remediless with his/its money in the form of credit struck with the Government. Refund allowed - appeal allowed - decided in favor of appellant.
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