The tax paid under Reverse Charge Mechanism cannot be treated as duty paid under the forward charge i.e. outward tax for claiming the refund of the same under the scheme of Budgetary Support. the appeal filed by the appellant is rejected and the impugned order passed by the adjudicating authority is upheld.
Refund— In the instant case, the issue to be decided is that whether under the provisions of Scheme of Budgetary Support the appellants are entitled to the refund of tax paid in cash under Reverse Charge Mechanism and secondly whether the appellants are entitled to refund based on unutilized tax credit at the end of the quarter July, 2017 to September, 2017.
Held that— The adjudicating authority observe that the tax paid under Reverse Charge Mechanism cannot be treated as duty paid under the forward charge i.e. outward tax for claiming the refund of the same under the scheme of Budgetary Support. As such the plea of the appellant does not hold good inasmuch as every payment made in cash has to be treated as tax paid in cash, whereas in this scenario the tax paid on behalf of other person’s liability is available in the form of Cenvat credit. Hence, the adjudicating authority has correctly rejected the claim of the appellants on this issue and I do not find any infirmity in the impugned order.
the appellant has pleaded that the amount of credit which was appearing at the end of the quarter primarily due to Transitional credit which had been subsequently utilized by the appellants in the future tax payments and accordingly, reduced the refund for the quarter ended 31 December, 2017, does not hold good because for any reason once the balance of credit figures out in the records of the appellant, the tax in cash during the said quarter is to be paid only once the entire credit has been exhausted in view of the provisions of the Scheme of Budgetary support. The refund has been correctly rejected by the adjudicating authority and I uphold the same.
The tax paid under Reverse Charge Mechanism cannot be treated as duty paid under the forward charge i.e. outward tax for claiming the refund of the same under the scheme of Budgetary Support. the appeal filed by the appellant is rejected and the impugned order passed by the adjudicating authority is upheld.
Refund— In the instant case, the issue to be decided is that whether under the provisions of Scheme of Budgetary Support the appellants are entitled to the refund of tax paid in cash under Reverse Charge Mechanism and secondly whether the appellants are entitled to refund based on unutilized tax credit at the end of the quarter July, 2017 to September, 2017.
Held that— The adjudicating authority observe that the tax paid under Reverse Charge Mechanism cannot be treated as duty paid under the forward charge i.e. outward tax for claiming the refund of the same under the scheme of Budgetary Support. As such the plea of the appellant does not hold good inasmuch as every payment made in cash has to be treated as tax paid in cash, whereas in this scenario the tax paid on behalf of other person’s liability is available in the form of Cenvat credit. Hence, the adjudicating authority has correctly rejected the claim of the appellants on this issue and I do not find any infirmity in the impugned order.
the appellant has pleaded that the amount of credit which was appearing at the end of the quarter primarily due to Transitional credit which had been subsequently utilized by the appellants in the future tax payments and accordingly, reduced the refund for the quarter ended 31 December, 2017, does not hold good because for any reason once the balance of credit figures out in the records of the appellant, the tax in cash during the said quarter is to be paid only once the entire credit has been exhausted in view of the provisions of the Scheme of Budgetary support. The refund has been correctly rejected by the adjudicating authority and I uphold the same.