TMI Blog2022 (6) TMI 42X X X X Extracts X X X X X X X X Extracts X X X X ..... ion envisaged in rule 6 of the said Rules that can be enforced, once again and by specific provisioning, through rule 14 of CENVAT Credit Rules, 2004. Rule 5 of CENVAT Credit Rules, 2004 does not provide for such recovery of non-monetized credit; on the contrary, denial of refund concurrently retains credit to that extent. Admittedly, this issue had not been raised in the proceedings before the first appellant authority. The outcome of the proceedings before the first appellate authority may well have been impacted by this proposition, along with the binding decisions, now put forth before the Tribunal. Furthermore, appellant also now claims to be in possession of documentation that could negate the denial of refund claim. Revenue has no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on input service deployed in rendering output service that was exported between October 2015 and March 2017, even as some relief was allowed by the first appellate authority. The claims, preferred under rule 5 of CENVAT Credit Rules, 2004 and in accordance with the procedures prescribed in notification no. 27/2012-CE (NT) dated 30th June 2012, had been partially sanctioned by the competent authority and denial of ₹ 73,88,288, along with disallowance of entitlement to re-credit the rest, was, upon challenge, granted save for ₹ 19,73,306 which was not interfered with. In effect, the denial also carried with it the bar of re-credit thereto. 2. The scheme for eliminating the cascading effect of taxation envisages taking of c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m verification of export turnover, authorize disaggregation of data and, except by application of the formula prescribed thereon, permit scope for truncation of the claim. He argues that this privilege cannot be turned on its head to review entitlement to the credit already availed of and not sought to be disallowed under the recovery provision in rule 14 of CENVAT Credit Rules, 2004. Rule 5 of CENVAT Credit Rules, 2004, according to him, does not envisage detriment to the assessee other than refusal of monetization and that, as the show cause notice did not propose recovery of credit but only denial of monetization, the original authority and, by continuation thereof, the first appellate authority were in breach of principles of natural ju ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nly now that appellant admits to be in possession of supportive documentation. 7. Having considered the rival submissions, and in the light of the decisions of the Tribunal, it is abundantly clear that recovery proceedings under, and in accordance with, rule 14 of CENVAT Credit Rules, 2004 is the sole authority for denial of credit that has been wrongly availed and such proceedings have nothing to do with export of goods or services. This is demonstrably clear from the general provisions of rule 3 and rule 14 of CENVAT Credit Rules, 2004 and the self-contained re-determination envisaged in rule 6 of the said Rules that can be enforced, once again and by specific provisioning, through rule 14 of CENVAT Credit Rules, 2004. Rule 5 of CENVAT ..... X X X X Extracts X X X X X X X X Extracts X X X X
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