Denial of CENVAT Credit Availment without Issuing SCN is not Valid: CESTAT rules in favour of BNP Paribas India Solutions [Read Order]
![Denial of CENVAT Credit Availment without Issuing SCN is not Valid: CESTAT rules in favour of BNP Paribas India Solutions [Read Order]](https://www.taxscan.in/wp-content/uploads/2023/04/CENVAT-Credit-SCN-CESTAT-BNP-TAXSCAN-.jpg "Denial of CENVAT Credit Availment without Issuing SCN is not Valid: CESTAT rules in favour of BNP Paribas India Solutions [Read Order]")
The Mumbai bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) in the case of BNP Paribas India Solutions has held that denial of Cenvat credit availment without issuing a proper Show Cause Notice (SCN) is not valid. The appellant is the exporter of service of Information Technology Software Services. The appellant had accumulated CENVAT Credit of around Rs. 12...
The Mumbai bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) in the case of BNP Paribas India Solutions has held that denial of Cenvat credit availment without issuing a proper Show Cause Notice (SCN) is not valid.
The appellant is the exporter of service of Information Technology Software Services. The appellant had accumulated CENVAT Credit of around Rs. 12 crores and filed a claim for refund of the same under the provisions of Notification No. 27/2017-CE (NT) dated 18.06.2012.
On 02.05.2019 the appellant was issued with an Order-in-Original wherein some refund was allowed and some amount of refund was rejected. On appeal, the Commissioner (Appeals) allowed some parts, remanded some parts and rejected a refund of Rs. 25,81,828/-.
It was contended by the appellant that the rejected amount was related to Service Tax paid on cleaning activities, convention centre, event management and renting of immovable property including car parking. Further submitted that the appellant was not issued with any show cause notice invoking Rule 14 of CENVAT Credit Rules, 2004 proposing denial of availing of the said credit
The deficiency memo has not invoked any provisions of CENVAT Credit Rules much less said Rule 14. Therefore, the said deficiency memo cannot be called a show-cause notice, it was concluded that the refund of Rs. 25,81,828/- was denied to the appellant without the issue of any show-cause notice.
A Single member bench comprising Mr Anil G Shakkarwar (technical) set aside that part of the impugned order through which refund of accumulated CENVAT Credit of Rs. 25,81,828/- was rejected and directed Revenue to refund accumulated CENVAT Credit of Rs. 25,81,828/- to the appellant. The appeal filed by the assessee was allowed.
To Read the full text of the Order CLICK HERE
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