TMI Blog2018 (8) TMI 553X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... udget, 2016, these services was exempted vide notification no. 09/2016 dated 01.03.2016 under Exemption entry S. no. 12A. This Exemption was given retrospective effect as per section 102 of the Finance Act, 2016. Accordingly, the services provided by the appellant during the period April 2015 to February 2016 stand exempted. Section 102 of Finance Act 2016 also provides for the refund of amount so ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that after passing order in Original, the appellant had reversed the entire credit on the excessive services received and used for providing the exempted output services and there is only one common service, i.e., CA service which was also reversed wholly whereas they were supposed to reverse on Pro rata basis. The payment of such reversal was made through challan and the same was submitted befor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... providing the exempted services and also on the common services. Therefore, they have complied with the requirement for sanction of refund in respect of Service Tax paid on their output Service which was exempted with retrospective effect. However, the reversal was made subsequent to the passing of the order in appeal. However, the said reversal was presented to the Commissioner (Appeals) who sho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ave 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. Accordingly, in my considered view, the adjudicating authority needs to verify the facts. Therefore, impugned order is set aside, the appeal is allowed by way of remand to the adjudicating ..... X X X X Extracts X X X X X X X X Extracts X X X X
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