POLYSPIN LTD. Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) THE authorities below have directed recovery of refund of credit of input service tax erroneously made to the assessees. The show -cause notices -proposed the recovery on the ground that Rule 3 of the CENVAT Credit Rules, 2004 did not cover provisions of n 66A of the Finance Act, 1994.

(2.) ON hearing both sides, I find that this was not a ground on which show -cause notice was issued but the adjudication order as well as the impugned orders proceed to deny refund on the ground that the service, namely, that of procuring export orders (Business Auxiliary Service) was not an input for the assessee in his capacity as manufacturer of the goods. Since the orders of the authorities below proceed to deny refund on a ground not raised in the show -cause notice, I agree with the assessees that the orders travel beyond the scope of the show -cause notice, which is not permissible in law. I, therefore, set aside the impugned orders and allow the appeals.