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2015 (3) TMI 1230 - AT - Service TaxRejection of Refund claim - in respect of certain claims, credit could not have been taken at all - in respect of certain refund claims, input services were received earlier and used for exported services and credit was taken much later i.e. after the export was over. Therefore there is no nexus between the input services and exporter output service - Held that: - during the relevant time, there was no time prescribed for taking the credit. Once credit was admissible and unless there was no nexus between the output service exported and input services were used when credit was taken, the refund of the same also could not have been denied since the substantive ground of taking CENVAT credit in the first place being correct would lead to the obvious conclusion that ultimately if it gets accumulated the refund has to be sanctioned. Notification No.5/2006-CE(NT) is issued to provide safeguards and conditions to implement the sanction of refund envisaged under Rule 5 and not to defeat the purpose of whole CENVAT credit scheme. Therefore once credit is admissible and taken and not held to be inadmissible and if it gets accumulated, the conditions in Rule 5 can be said to have been fulfilled. There is also a Boards instruction saying that the CENVAT credit taken forms a pool and can be used for any purpose once credit is admissible. Appeal allowed - matters are remanded to the original adjudicating authority to decide the admissibility of the refunds claimed.
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