By Puloma Dalal, Jayesh Gogri, Mandar Telang Chartered Accountants
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When substantive conditions of the Rebate Notification are fulfilled by the assessee, rebate claim cannot be denied merely for not filing the declaration in time, if the contents of the declaration are such that they can be verified from the records maintained.
Facts:
The appellant regularly filed refund claims under Rule 5 of CENVAT Credit Rules in terms of unutilised credit on input services, used in the output services which were exported. For the disputed period, it did not claim the refund but filed a rebate claim in terms of Notification No.12/2005-ST dated 19/04/2005. A declaration required in terms of the said notification was filed much after the date of export along with condonation of delay for late filing. The rebate claim was rejected on the ground that the declaration was to be filed prior to expiry of one year from the date of export of services.
Held:
The Tribunal held that it is undisputed that conditions prescribed in the said notification have been followed in the present case. However, the procedure was not followed to the extent that declaration was filed after the export of service. It was noted that the contents of the declaration are not such, as cannot be verified from the records maintained. Further, records such as invoice on which input tax credit is availed and records indicating export of services will not reveal any information which is not verifiable later. Having regard to the same and after satisfying itself that the assessee has not claimed CENVAT credit under Rule 5 and the said notification simultaneously, held that the contravention of not following the procedure of filing the declaration is indeed a procedural formality, for contravention of which substantial justice cannot be denied. Accordingly rebate was sanctioned and appeal was allowed.
