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2013 (7) TMI 237 - CESTAT BANGALORERefund – unutilized CENVAT credit – business auxiliary services - the substantive issue arose as to whether the company was entitled to claim refund of unutilized CENVAT credit taken on input services which were claimed to have been used for providing their output services exported – Held that:- no attempt was made to determine the exact nature of the output services exported by the assessee, nor to determine the nexus between the input services and the output services. - The nature of activities should be correctly deciphered from the terms of the relevant agreements and the same should be classified under the appropriate head under Section 65(105) of the Act. It is not open to the taxman to approbate and reprobate in this exercise. A correct decision on the subject refund claims should depend on the correct classification of the output services provided by the assessee to the foreign entities. Hence a remand of the case is warranted. Reverse charge mechanism – another issue was whether the assessee was liable to pay service tax under reverse charge mechanism - the service classified as "manpower recruitment or supply agency service" from abroad - the classification of the output services exported by the assessee has got to be done with reference to the entry (under Section 65(105) of the Act) claimed by the assessee and any particular rival entry invoked by the Revenue. - the dispute involved in the Department's appeal also has to be remanded for de novo adjudication.
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