There has always been ambiguity prevails among exporter of services regarding availment and refund of CENVAT in case of non registration under Service tax. Earlier this issue had been taken up by various lower authorities wherein in some cases decision was given in the favour of the assessee while in other against the assessee. Recently, Hon’ble High Court of Karnataka in the matter of Commissioner of Service Tax v. Tavant Technologies India (P) Ltd. (2016) 67 taxmann.com 193(Karnataka), held that service exporters may avail the CENVAT Credit and take refund thereof even without registration.

In the said case, department denied the CENVAT Credit and consequent refund thereon on the ground that assessee was not registered under Service tax law. However learned counsel appearing for both the parties were unable to point out any provision in the CENVAT Credit Rules, 2004 which prescribes registration as a condition precedent for claiming CENVAT Credit. Moreover, there is no provision even under rule 5 ibid which provides for condition precedent for registration of Service provider. Affirming the decision laid down in the case of mPortal India Wireless Solutions (P.) Ltd. v. CST (2012) 27 STR 134 (Kar), honorable Karnataka High Court decided the case in favour of the respondent-assessee and ruled out that in the absence of any provision in Service tax law or CENVAT Credit Rules, 2004 requiring registration of service exporters, who are not liable to pay any Service tax, service exporters may take credit and refund thereof even without registration.