Registration of Premises Not Mandatory to Claim Refund of Unutilized CENVAT Credit on Input Services: CESTAT [Read Order]

The Chennai Bench of Customs, Excise and Service Tax Appellate Tribunal ( CESTAT ) held that registration of premises is not mandatory to claim a refund of unutilized CENVAT credit on input services.

Cargotec India Pvt. Ltd, appellant-assessee, was a 100% Export Oriented Unit under the Software Technology Park Scheme providing IT software services. It filed refund claims for unutilized CENVAT credit on exports from April to June 2011 and July to September 2011.

The original authority approved only part of the refund and rejected the rest, stating services were done from unregistered premises and there was no link between input and output services. The Commissioner (Appeals) upheld this decision and dismissed the refund claims.

A single member bench of M.Ajit Kumar ( Technical Member) reviewed the submissions and records related to the issue of unregistered premises involving Rs.7,75,557. The assessee had moved operations in April 2011 to new premises in Taramani for more space, cost savings, and better business opportunities. The assessee was a registered 100% Export Oriented Unit under the Finance Act, 1994, and updated its service tax registration in January 2012 to reflect the new location.

The appellate tribunal referred to court rulings that said registration of premises was not mandatory to claim a refund of unutilized CENVAT credit on input services. These rulings allowed refunds even if the premises were unregistered.

The CESTAT found the original order unclear and wrong to reject the claim just because the service tax credit came from unregistered premises. It noted the assessee was registered properly and had maintained records. Since the assessee cooperated by providing data, the tribunal set aside the rejection.

In short,the appeal was disposed of.

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