9911796707
TMI Blog2018 (5) TMI 1561X X X X Extracts X X X X X X X X Extracts X X X X ..... use notice dated 30.10.2015 calling upon the appellant to explain why the refund claim under Rule 5 of the CENVAT Credit Rules, 2004 should not be denied. After following due process, the Deputy Commissioner issued Order-in- Original No. 07/2016-17-ST(Tech-II)-Refund dated 27.04.2016 sanctioning refund of Rs. 1,34,98,634/- and rejecting an amount of Rs. 12,37,997/-, on the ground that some input goods or services cannot be deemed to be used for providing the output services. Aggreived, the appellant filed an appeal before the Commissioner (Appeals) who vide Order-in-Appeal No. HYD-EXCUS-004-APP-0347 & 0348-16-17 dated 28.02.2017, examined if each of those services can be claimed as input services and allowed refund in respect of some and di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to procedure, safeguards, conditions and limitations, as may be specified by the Board by notification in the Official Gazette: Refund amount = (Export turnover of goods+ Export turnover of Total turnover services) x Net CENVAT credit Where,- (A) " Refund amount" means the maximum refund that is admissible; (B) "Net CENVAT credit" means total CENVAT credit availed on inputs and input services by the manufacturer or the output service provider reduced by the amount reversed in terms of sub-rule (5C) of rule 3, during the relevant period; (C) "Export turnover of goods" means the value of final products and intermediate products cleared during the relevant period and exported without payment of Central Excise duty under bond ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... only the proportionate amount is total CENVAT credit. Notification No. 27/2012 issued under Rule 6 also does not deviate from this scheme. Therefore, the Deputy Commissioner should have calculated the total net CENVAT credit and applied the formula and allowed the refund accordingly. If the assessee has, in fact availed CENVAT credit on input goods or services wrongly which needs to be recovered, then such amount should have been recovered through a notice under Rule 14 of CENVAT Credit Rules, 2004 and any other relevant provisions and following the appropriate procedure. Rule 5 of CENVAT credit Rules is not an instrument for the purpose. I, therefore, find it proper to remand the matter back to the Deputy Commissioner to decide the refund ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
