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Refund of Cenvat credit

Last updated: 28 February 2008

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Court :
cestat, mumbai bench

Brief :
The appellant-assessee was engaged in providing business auxiliary services and export of said services. It was availing benefit of the Cenvat credit in respect of input services used by it in the export of auxiliary services. Since it was unable to utilize the said credit for the relevant period, it claimed refund according to substituted rule 5 amended with effect from 14-3-2006. the adjudicating authority rejected the claim on the ground that rule 5 prior to its substitution did not provide for refund of unutilized credit to the provider of output services

Citation :

On appeal, the Commissioner (Appeals) also rejected the assessee’s plea that the substituted rule 5 was clarificatory in nature and that it had substantive right to claim refund under those provisions, once all the conditions prescribed under the notification were fulfilled. The Commissioner (Appeals) upheld the order of the adjudicating authority.