M/S. Tvs Interconnect Systems Limited vs Cce, Madurai

(Arising out of Order-in-Appeal No. 64/2013 dated 22.7.2013 passed by the Commissioner of Central Excise (Appeals), Madurai)

M/s. TVS Interconnect Systems Limited Appellant

Vs.

CCE, Madurai Respondent

Appearance

Shri J. Shankararaman, Advocate, for the Appellant Shri M. Rammohan Rao, JC (AR) for the Respondent

CORAM

Honble Shri D.N. Panda, Judicial Member

Date of Hearing / Decision: 14.09.2015

Final Order No. 41209 / 2015

Learned counsel says that the service was provided in Jammu and Kashmir and there shall be no liability to service tax which is settled by both the authorities below.

2. When he filed refund application with relevant documents, learned adjudicating authority observes that there were no materials before him. Learned counsel submits that the appellant has come out with clean hands, categorically claiming that there were no service tax liability arose for which the service tax charged was not realized issuing a credit note and the appellant has not paid the tax element. This is crucial to consider the claim of the appellant that it was not unjustly been enriched at the cost of the service recipient. If the document provided to the adjudicating authority is examined in this angle of law, the dispute shall be reduced at the grass root level.

3. Learned AR for Revenue agrees that there should be a scrutiny of the service tax element if any charged in the invoice and no recovery thereof by the appellant through the process suggested above . In case of no recovery, refund shall be admissible.

4. Heard both sides and perused the records.

5. The aforesaid submissions of both sides can bring amity to the situation. Therefore, learned adjudicating authority shall dispose of the litigation at the grass root level examining the plea of each other to satisfy that there was no recovery of the service tax element by the appellant from the service recipient. Once he satisfies as to this condition, refund shall be admissible to the appellant in accordance with law.

6. Appeal is remanded to the adjudicating authority to afford reasonable opportunity of hearing to the appellant and pass appropriate order. (Dictated and pronounced in open court)

(D.N. Panda) Judicial Member

Rex

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