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CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL CHENNAI REGIONAL BENCH - COURT No. I Service Tax Appeal No.41653 of 2017 (Arising out of Order in Appeal No.32 & 33/2017, dated 21.04.2017, passed by the Commissioner of Central Excise (Appeals I), Coimbatore at Madurai, Lal Bahadur Shastri Marg, Madurai 625 002)

M/s. ATC Tires Pvt. Ltd. ...Appellant SIPCOT SEZ, Plot No. A-2, SIPCOT Industrial Growth Center Gangaikondan Tirunelveli 627 352 Versus Commissioner of GST & Central Excise ...Respondent Central Revenue Building No.4, Lal Bahadur Shastri Road Bibikulam, Madurai 625 002 AND Service Tax Appeal No.41654 of 2017 (Arising out of Order in Appeal No.32 & 33/2017, dated 21.04.2017, passed by the Commissioner of Central Excise (Appeals I), Coimbatore at Madurai, Lal Bahadur Shastri Marg, Madurai 625 002)

M/s. ATC Tires Pvt. Ltd. ...Appellant SIPCOT SEZ, Plot No. A-2, SIPCOT Industrial Growth Center Gangaikondam Tirunelveli 627 352 Versus Commissioner of GST & Central Excise ...Respondent Central Revenue Building No.4, Lal Bahadur Shastri Road Bibikulam, Madurai 625 002 APPEARANCE:

Mr. Raghav Rajeev, Advocate for the Appellant Ms. O.M. Reena, Authorised Representative for the Respondent CORAM :

HON’BLE MR. VASA SESHAGIRI RAO, MEMBER (TECHNICAL)

HON’BLE MR. AJAYAN T.V. MEMBER (JUDICIAL)

FINAL ORDER Nos.41165-41166/2016 DATE OF HEARING : 09.06.2026 DATE OF DECISION: 04.11.2026 Per AJAYAN T.V.

These two appeals, preferred by M/s ATC Tires Pvt. Ltd., a unit in the SIPCOT Special Economic Zone at Gangaikondan, assail the common Order in Appeal No. 32 & 33/2017 dated 21.04.2017 of the Commissioner of Central Excise (Appeals I), Coimbatore at Madurai. By that order, the appeals against Order in Original No. 32/2016 dated 27.04.2016 and Order in Original No. R-78/2016 dated 12.09.2016 of the Assistant Commissioner of Central Excise, Tirunelveli Division, were rejected. The appeals arise from one impugned order and raise common questions. They are therefore disposed of together.

Relevant facts

2. The appellant manufactures tires falling under Chapter 40 of the Central Excise Tariff in its unit in the Special Economic Zone (SEZ) and holds Service Tax Registration No. AACCN5773ASD002. Its corporate office at Mumbai is registered as an Input Service Distributor (ISD). The appellant chose the route of refund under Notification No. 12/2013-ST dated 01.07.2013 (the Notification), which superseded Notification No. 40/2012-ST dated 20.06.2012. It filed a claim in Form A-4 dated 16.11.2015 for Rs.1,36,46,343/- for the quarter April to June 2015, and another dated 30.03.2016 for Rs.1,27,47,749/- for the quarter July to September 2015. Each claim included service tax distributed to the SEZ unit by the Mumbai office under ISD Invoice No. ISD/MUM/14-15/84 dated 30.06.2015 and ISD Invoice No. ISD/MUM/14-15/87 dated 30.09.2015 respectively.

3. Show Cause Notice No. 01/ST-Refund/2015 dated 01.01.2016, relating to the first quarter, proposed to disallow Rs.1,04,45,984/-. Of the amounts distributed through the ISD invoice dated 30.06.2015, Rs.48,82,536/- represented tax paid by the Mumbai office between April 2014 and October 2014. This was proposed to be rejected as filed beyond one year of payment and as relating to quarters for which claims had already been filed. A further Rs.34,42,843/- paid between November 2014 and March 2015 was proposed to be rejected under paragraph 3(III)(f) of the Notification, on the premise that refunds for those quarters had already been claimed and sanctioned. Three smaller sums were proposed to be rejected only because they were paid outside the quarter April to June 2015, namely Rs.43,260/- paid in October 2015, Rs.4,85,575/- paid between April 2014 and March 2015 and Rs.451/- paid in August 2015. The same objection was taken to Rs.13,70,873/- of tax paid under reverse charge between May 2014 and March 2015. The notice also proposed to disallow Rs.13,502/- on car hire and electricity exchange services and to r