The Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) allowed Service Tax Refund Claim to Deloitte Global Financial Advisory India Pvt Ltd, the appellant.
The appellant had sought sanction of ₹1 crore claimed to be credit availed on procurement of taxable services and/or dutiable goods deployed in the rendering of services outside the country between April 2016 and June 2016 that, in accordance with the statutory mechanism for neutralization of imposts in the value of exported services or goods, were to be reimbursed to the exporter.
The original authority disallowed refund to the extent of ₹ 15 lakhs that, carried in appeal, did not find favour with Commissioner of CGST & CX (Appeals-II),and that orderof dismissal is impugned in the present appeal.
The disputed services, on which credit was taken and found to be ineligible, are ‘management consultancy service’, ‘real estate agent service’, ‘garden maintenance’ and ‘club and association service’; it does not appear to have occurred to the lower authorities that, in the era of ‘negative list’.
In KKR India Advisors Pvt Ltd v. Commissioner of CGST, Mumbai Central, it was held that the adjudicating authority, without issuance of show cause notice as regards the admissibility of the input service, rejected the refund which is not permissible.
The Tribunal of CJ Mathew, Technical Member observed that “It is seen from the impugned order that no such notice was issued to the appellant herein. The preliminary objections to the refund limited itself to a few objections that appear to have been responded to and none of those have proposed that the said amount of credit was to be recovered. In the absence of this critical requirement to comply with principles of natural justice, the denial of credit is without authority of law and impugned order is set aside.”
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