CESTAT allowed assessee to claim refund of transitional credit available after filing of revised Service Tax return

Case details: Punjab National Bank v. Commissioner of Central-tax - [2021] 130 taxmann.com 74 (Bangalore - CESTAT)

Judiciary and Counsel Details

• • S.S. Garg, Judicial Member
  • Badrinath, CA for the Appellant.
  • Narendrababu P. Byahatti, Superintendent, (AR) for the Respondent.

Facts of the Case

The assessee filed original return of service tax for period April 1st, 2017 to June 30th, 2017 on August 30th. 2017 and disclosed closing balance of cenvat credit of service tax as nil. Subsequently it filed revised return of service tax for aforesaid period on September 4th, 2017 and as a result of which cenvat credit of service tax had increased by Rs. 15.74 lacs. Thereafter assessee filed a claim for refund of Rs. 15.74 lacs on July 30th, 2018 in accordance with provisions of section 142(9)(b) of Central Goods and Services Tax (CGST) Act, 2017.

The Competent Authority as well as Appellate Authority rejected refund claim of assessee on ground that refund was time barred in view of section 11B of Central Excise Act, 1944. It filed appeal before the CESTAT.

CESTAT Held

The honorable CESTAT observed that whenever two options are available, the assessee may choose the option which is more beneficial for them. In instant case, the assessee had chosen to file refund claim under section 142(9)(b) of CGST Act which had overriding effect over section 11B of Central Excise Act. Therefore, the assessee was entitled for refund and matter to be remanded back.

List of Cases Referred to

• • Uttam Steel Ltd. v. Union of India 2003 (158) ELT 274 (Bom.) (para 3)
  • Commissioner v. Voith India (P.) Ltd. 2010 (254) ELT A75 (SC) (para 3)