The Mumbai bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) held that no bar on taking the CENVAT Credit of Service Tax Accumulated for the period when the premises were not registered. Zyfin Capital Private Limited, the appellant assessee was an exporter of service of market research analysis, data support, etc. cleared without payment of duty and it has been receiving convertible foreign currency from the month of its first export made in December 2013.
The assessee appealed against the order passed by the Commissioner of CGST & Central Excise for the Rejection of the part refund claim of the assessee. Vishal Agarwal and Abhishek Deodhar, the counsels for the assessee contended that instead of taking the opening balance of CENVAT Credit as available in October 2013 and adding the accumulated credit of October 2013 to the December 2013 quarter with the opening balance of credit available, the Order was passed to the effect that only one quarter is to be considered against one refund application. Ajay Kumar Shrivastava, the counsel for the department contended that the refund claim made was much higher than the output services provided during the relevant period for which the proportionate rejection.
The Bench observed that the refund of unutilized CENVAT credit in export of services having a purpose to encourage/promote export and earn foreign exchange, a minor procedural infraction would not stand in the way of grant of refund and the assessee was therefore, entitled to get the entire amount of refund claim. The two-member bench comprising Suvenda Kumar Pati (Judicial) and Anil G Shakkarwar (Technical) held that the assessee was entitled to get the refund with interest applicable as per law and the Department was directed to pay the same within three months of receipt of the order.