The Kolkata bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that the refund of a claim by adding invoices of the previous quarter which were not used for claiming during the previous quarter was a valid claim and allowable.
Orga Systems India Pvt. Ltd, the appellant assessee was a Special Economic Zone(SEZ) Unit exporting their services, and inputs were fully consumed towards the output services exported by them during the period April 2014 to March 2015. The assessee filed a refund claim for the quarter ending September 2014 which was not used for claiming a refund.
The assessee appealed against the order passed by the Commissioner (Appeals) for rejecting the refund claim filed by the assessee.
B. R. Datta, the counsel for the assessee contended that there was no condition that the refund claim should be filed for Invoices on that quarter only.
It was further submitted that the refund cannot be rejected based on the claim about invoices in respect of another quarter.
S. S. Chattopadhyay, the counsel for the revenue relied on the decisions made by the lower authorities and contended that the rejection of the refund claim made by the Commissioner was as per the law and liable to be sustained.
The bench observed that there was no condition about the non-inclusion of the previous quarter’s invoices in the next quarter’s refund claim. This condition had been placed so that the assessee does not make more than one claim per quarter by resorting to monthly refund claims.
A single-member bench comprising R. Muralidhar (Judicial) held that there was no violation of the conditions imposed under the notification and refund claimed by the assessee while allowing the appeal filed by the assessee.
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