CESTAT allows Refund of Excise duty paid on Service Tax paid on Transportation Charges [Read Order]

The Chandigarh Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT)  allowed the refund of Excise duty paid on service tax paid on transportation charges.

The appellant, M/s Pearl Drinks Limited assailed the impugned orders wherein the refund claim filed under Notification No. 1/10 dated 06.02.2010 was denied. On account that duty has been paid excess, therefore they are not entitled to take an excess claim of refund of excess duty paid. The freight has not been included in the assessable value of the goods, therefore, they are not entitled to claim refund thereon.

The appellant submitted that at the time of the clearance they were paying duty but in the impugned period certain goods were returned from the buyers on which they have paid the duty which has been cleared on payment of duty, as they have cleared the goods and paid duty at the time of clearance, therefore they have not paid any excess duty and they have claimed refund of the actual duty paid by them in cash.

On the other hand, the respondents submitted that as the goods have been returned to the appellant and they have taken the Cenvat credit thereon, it is not clear from the records whether any process has been taken on goods and they have been cleared on payment of duty. It is a fact that when they have taken the credit excess payment of duty, therefore, they are not entitled to claim refund of excess duty paid in cash. She further submits that with regards to transportation charges the appellant has submitted only sample invoices and require records for verification, in these circumstances, the matter is remanded back to adjudicating authority for verification.

The coram of Judicial Member Ashok Jindal found that appellant has submitted invoices before the adjudicating authority as well as with the Commissioner (Appeals), in these circumstances, it is not required further re-examination. Further it is a claim of the appellant that they have not included the transportation charges in the assessable value which is evident from the invoices placed before me. In these circumstances, the tribunal held appellant is entitled to claim refund of duty paid on service tax paid on transportation charges.

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