• Advertise
  • Membership
  • Sign inSUBSCRIBE
Legal Era
X
Sign in
  • Home
  • News
    +
    • From the Courts
    • Policy & Law
    • Supreme Court (India)
    • High Court (India)
    • TAX Updates
    • MARKET WATCH
    • Deal Street
    • Global Insights
    • IBC Cases
    • Hires & Moves
    • IP News
    • Competition Verdict
  • Articles
    +
    • ABOUT THE LAW
    • AWARDS & ACCOLADES
    • Aerospace
    • Agriculture
    • Alternate Dispute Resolution
    • Banking and Finance
    • Bankruptcy
    • Book Review
    • Bribery & Corruption
    • Commercial Litigation
    • Competition Law
    • Conference Reports
    • Consumer Products
    • Contract
    • Corporate Governance
    • Corporate Law
    • Covid-19
    • Cryptocurrency
    • Cybersecurity
    • Data Protection
    • Defence
    • Digital Economy
    • E-commerce
    • Employment Law
    • Energy and Natural Resources
    • Entertainment and Sports Law
    • Environmental Law
    • FDI
    • Food and Beverage
    • Health Care
    • IBC Diaries
    • Insurance Law
    • Intellectual Property
    • International Law
    • Labour Laws
    • Litigation
    • Litigation Funding
    • Manufacturing
    • Mergers & Acquisitions
    • NFTs
    • Privacy
    • Private Equity
    • Project Finance
    • Real Estate
    • Risk and Compliance
    • Technology Media and Telecom
    • Tributes
    • Zoom In
    • Take On Board
    • In Focus
    • Law & Policy and Regulation
    • IP & Tech Era
    • Viewpoint
    • Arbitration & Mediation
    • Tax
    • Student Corner
  • Law Firms
  • In-House
  • Rankings
  • E-Magazine
  • Legal Era TV
  • Events
  • News
    • From the Courts
    • Policy & Law
    • Supreme Court (India)
    • High Court (India)
    • TAX Updates
    • MARKET WATCH
    • Deal Street
    • Global Insights
    • IBC Cases
    • Hires & Moves
    • IP News
    • Competition Verdict
  • Articles
    • ABOUT THE LAW
    • AWARDS & ACCOLADES
    • Aerospace
    • Agriculture
    • Alternate Dispute Resolution
    • Banking and Finance
    • Bankruptcy
    • Book Review
    • Bribery & Corruption
    • Commercial Litigation
    • Competition Law
    • Conference Reports
    • Consumer Products
    • Contract
    • Corporate Governance
    • Corporate Law
    • Covid-19
    • Cryptocurrency
    • Cybersecurity
    • Data Protection
    • Defence
    • Digital Economy
    • E-commerce
    • Employment Law
    • Energy and Natural Resources
    • Entertainment and Sports Law
    • Environmental Law
    • FDI
    • Food and Beverage
    • Health Care
    • IBC Diaries
    • Insurance Law
    • Intellectual Property
    • International Law
    • Labour Laws
    • Litigation
    • Litigation Funding
    • Manufacturing
    • Mergers & Acquisitions
    • NFTs
    • Privacy
    • Private Equity
    • Project Finance
    • Real Estate
    • Risk and Compliance
    • Technology Media and Telecom
    • Tributes
    • Zoom In
    • Take On Board
    • In Focus
    • Law & Policy and Regulation
    • IP & Tech Era
    • Viewpoint
    • Arbitration & Mediation
    • Tax
    • Student Corner
  • Law Firms
  • In-House
  • Rankings
  • E-Magazine
  • Legal Era TV
  • Events

Top Stories

  • Debashree-Dutta
    Shardul Amarchand Mangaldas advised
  • Trilegal
    Trilegal advised Muthoot Finance
  • SAM
    Shardul Amarchand Mangaldas advised
  • Sippy
    Delhi High Court rules on Trademark Law
  • Stovekraft
    Arya Mathew joins Stovekraft as a
  • Punjab-and-Haryana-High-Court
    Punjab and Haryana High Court repeals
  • Sahara
    Supreme Court sets aside Delhi High
  • NCLAT
    NCLAT urges IBBI to consider modifying
  • Insurance
    Supreme Court directs insurance
  • Supreme Court terms copyright infringement a non-bailable offence
    Supreme Court terms copyright
HomeNewsTAX Updates
11 May 2022 5:15 AM GMT

CESTAT sets-aside denial to avail CENVAT credit on service tax

By: Nilima Pathak
CESTAT sets-aside denial to avail CENVAT credit on service tax

CESTAT sets-aside denial to avail CENVAT credit on service tax The company had sought a cash refund under the Central Goods and Services Tax Act, 2017 The Mumbai bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) has rejected the denial to avail of the Central Value Added Tax (CENVAT) credit on service tax paid during the Goods and Services Tax (GST) regime under...

ToRead the Full Story, Subscribe to Legal Era

Access the exclusive LEGAL ERAStories,Editorial and Expert Opinion

Subscribe Now
AlreadyaSubscriber?SigninNow
View Plans


CESTAT sets-aside denial to avail CENVAT credit on service tax

The company had sought a cash refund under the Central Goods and Services Tax Act, 2017

The Mumbai bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) has rejected the denial to avail of the Central Value Added Tax (CENVAT) credit on service tax paid during the Goods and Services Tax (GST) regime under the Reverse Charge Mechanism (RCM).

The appellant, Brose India Automotive Systems had paid the service tax during the GST regime under RCM on the import of services.

The company filed a refund application within the limitation period of one year under the Central Excise Act, 1944. But after the onset of the GST regime, it could not avail of the credit. The appellant then sought a cash refund by invoking the protection granted under the Central Goods and Services Tax (CGST) Act, 2017.

But the adjudicating authority (AA) rejected the refund application. He conveyed that GST was payable on the recorded transactions, as the final booking was made in the account books during the GST regime. Even though the service had been rendered (prior to July 2017) during the pre-GST regime.

Since the Commissioner (Appeals) also confirmed the order, the appellant appealed before CESTAT.

The appellant's counsel Sri S. Narayanan submitted that the appellant was eligible to avail credit of the service tax paid, as the input services were used for manufacturing activities. Since carrying forward of CENVAT credit to the GST regime had expired in December 2017, the appellant was left with no choice. Therefore, he had to get the CENVAT credit in cash as contemplated under the CGST Act.

The tribunal observed that under the CGST Act, any proceeding including an appeal if filed after the appointed day under the Repealed Act would continue as if the GST Act had not come into force. Also, the previous Act had not been amended.

The single bench comprising Judicial Member Dr. Suvendu Kumar Pati allowed the appeal.

He ordered, "The appellant is entitled to get a refund of CENVAT credit against which payment of service tax was made during the GST regime and accepted by the Respondent-Department. The department is directed to pay the refund amount of Rs.18,43,422 along with applicable interest within three months."

Nilima Pathak

Nilima Pathak

TAGS:
  • Customs Excise & Service Tax Appellate Tribunal 
  • Central Value Added Tax 
  • Goods and Services Tax 
  • Central Excise Act 
  • Central Goods and Services Tax 
Next Story
Similar Posts
See More
Trending Now
Tax on Alimony

Tax on Alimony

XXXXXXX

XXXXXXX

Insolvency Procedure For MSMEs?

Insolvency Procedure For MSMEs?

Power of Magistrate to direct FIR registration & proper investigation under Section 156(3) of Cr.PC

Power of Magistrate to direct FIR registration & proper

Recommended Articles
Arbitration and Commercial Courts: A Jurisdictional Conflict

Arbitration and Commercial Courts: A Jurisdictional Conflict

Multiplicity of Arbitral Proceedings in India

Multiplicity of Arbitral Proceedings in India

Copyright and Non-Fungible Tokens (NFTs)

Copyright and Non-Fungible Tokens (NFTs)

Renewed Interest in Quincecare Duty of Care in Claims Against Banks

Renewed Interest in Quincecare Duty of Care in Claims

  • News
  • From the Courts
  • Supreme Court (India)
  • High Court (India)
  • Global Insights
  • Deal Street
  • Hires & Moves
  • Refund & Cancellation Policy
  • Articles
  • Zoom In
  • Take On Board
  • In Focus
  • Law & Policy
  • IP & Tech Era
  • Viewpoint
  • Arbitration & Mediation
  • Tax
  • Student Corner
  • Interviews
  • Law Firms
  • E-Magazine
  • Legal Era TV
  • Membership
  • Reader's Feedback
  • Cartoons
  • Subscribe
Follow Us
Subscribe Newsletter
  • 2022© All rights reserved Legal Era Media Group
  • Who We Are
  • Careers
  • Advertise with Us
  • Contact Us
  • Privacy Policy
  • Terms and Conditions
Powered by  Hocalwire
X
X