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2022 (3) TMI 1100 - AT - Service TaxRefund of services tax / Cenvat Credit - tax deposited under reverse charge mechanism, pursuant to audit objection - revenue neutrality - Post GST regime - HELD THAT:- The payment of service tax including the cess relating to the period prior to 30.06.2017, paid in the year 2018 during the GST regime, amounts to payment in accordance with law as the same has been paid on the insistence by the Department – audit objection. Further, it is found that the demand pursuant to audit is also bad as the appellant was entitled to cenvat credit being a manufacturer of dutiable items, and as such the situation is revenue neutral. Further, the appellant under the erstwhile Cenvat Credit Rules was entitled to cenvat credit of the said amount - Further, in view of the provisions of Section 142(3) of CGST Act, provides that every claim for refund filed by any person before, on or after the appointed day, for refund of any amount of cenvat credit, duty, tax, interest or any other amount paid under the existing law, shall be disposed of in accordance with the provisions of existing law and any amount eventually accruing to him shall be paid in cash, notwithstanding anything to the contrary contained under the provisions of existing law other than the provisions of sub-section (2) of Section 11B of the Central Excise Act, 1944 (unjust enrichment). From a conjoint reading of sub-section (3), (5) and (8)(a) of the CGST Act, it is evident that an assessee is entitled to claim refund of service tax under RCM paid after the appointed day under the existing law and such claim has to be disposed of according to the provisions of the existing law. As the appellant was entitled to cenvat credit of the said amount of ₹ 9,85,827/-, which is now no longer available due to GST regime, they are entitled to refund of the said amount. The Adjudicating Authority is directed to grant refund of the said amount to the appellant within a period of 45 days from the date of receipt of copy of this order alongwith interest as specified under Section 11BB of the Central Excise Act - appeal allowed - decided in favor of appellant.
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