Service Tax Refund Claim - Pre-Registration

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A.sUNEELKUMAR

22 Points Posted on 02 November 2010

Hi Guru's,

I am working in a software company 100% EOU Company, Company have filed a refund claim on 22.07.2010 for the period from August 2009 to March 2010. The above refund claim was filed under Rule 5 of the Cenvat Credit Rules, 2004. read with Section 11B of the Central Excise Act, 1944, Export of Service Rules, 2005. Notification No.9/2005-ST dated 03.03.2005. But the company got registered 16.05.2010. So in this case whether the company is eligible or not to get refund relating to the Pre-Registration period(August 2009 to March 2010), as per CENVAT Credit rules.

Please any one can help in this case.........

Regards,

NKR

Replies (3)

Madhukar N Hiregange

Chartered Accountant

33545 Points Posted on 03 November 2010

As long as you were provding taxable services and the input services are eligible the credit shouldbe available.

Pavan Jain S

Chartered Accountant

1445 Points Posted on 04 November 2010

Registration is a procedural requirement. You cannot be denied the benefit to which you are entitled under the law.

Rajesh Kumar. C

Sr.Consultant - Indirect taxes

37 Points Posted on 11 November 2010

CENVAT credit is an indefeasible right of an assessee and cannot be denied on procedural grounds.

Typically, refund of CENVAT Credit prior to registration is disallowed by the Adjudication Authorities (first level). A reasoned Order would be passed for rejection against which the assessee could prefer an Appeal with the Appellate Commissioner, which will be decided on merits.

If the Order of Commr (A) too turns out to be unfavourable, the Assessee could approach the CESTAT.

Generally, obtaining refund is a long drawn process and involves substantial efforts.

Rgds,

Rajesh