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PayPal can’t be denied Refund of Cenvat Credit for mere Non-Registration of Premises: Madras HC [Read Order]

PayPal - pay pal - Cenvat credit - Taxscan

The High Court of Madras held that M/s PayPal India Pvt. Limited cannot be denied a refund of Cenvat credit for mere non-registration of Premises.

The Revenue Department challenged the order of the Tribunal, wherein it was held that the refund of the Cenvat credit claimed by the Assessee under Rule 5 of CCR Rules, 2004, cannot be denied to the Assessee merely because the premises in question from where the services in question were exported, were not registered with the Revenue Department.

The revenue department contended that the earlier judgments of the Court have not been accepted by the Revenue Department. However, appeals against those judgments were not filed before the Supreme Court on account of their low tax effect.

However, the assessee supported the order of the Tribunal and argued that since the controversy is covered by the earlier judgments of a Division Bench of this Court, there is no reason to take a different view of the matter and the present appeal filed by the Revenue has no merit and is liable to be dismissed.

The division bench of  Justices Dr.Vineet Kothari and Krishnan Ramaswamy held that M/s PayPal India  Pvt. Limited cannot be denied a refund of Cenvat credit for mere non-registration of Premises.

“The relevant rules, notifications and earlier judgments of the Coordinate Bench having been considered while allowing the appeal filed by the Assessee, the learned Tribunal held that refund claimed by the Assessee on Cenvat Credit cannot be disallowed merely because the premises in question was not registered with the Revenue Department. It is brought to our notice that the Assessee had applied for such registration and the same was granted by the Department on 1.6.2009 and the present controversy pertains to the period prior to 01.06.2009, the date of grant of registration,” the bench said.

To Read the full text of the Order CLICK HERE

 

 

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