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2014 (5) TMI 917 - AT - Service TaxDenial of refund claim - software development services - various input services - Held that:- If the credit is availed by the manufacturer, then the said service should have been utilised by the manufacturer directly or indirectly in or in relation to the manufacture of final products or used in relation to activities relating to business. If any one of these two tests is satisfied, then such a service falls within the definition of ‘input service’ and the manufacturer is eligible to avail CENVAT credit of the service tax paid on such service. As regards the credit in respect of service tax paid subsequent to July 2008 claimed as refund in respect of CENVAT credit accumulated during the month of July 2008, the submissions made by the learned counsel are not acceptable. If the CENVAT credit account is correctly maintained, the credit could not be taken in the account in the month of July 2008. When credit could not have been taken, question of accumulation of credit because of inability to utilize does not arise. Just because of the refund claim filed in November 2008 and because appellant did not follow the correct procedure for availing the CENVAT credit, the appellant find themselves in a situation wherein they have claimed accumulated CNEVAT credit before payment and availment of credit. That being the position, the decision of the lower authorities to disallow the credit cannot be found fault with. . The refund claim amounting to ₹ 3, 39,152/- rejected by the lower authorities being the amount of service tax paid subsequent to July 2008 is held to be inadmissible and the decision of the lower authorities is upheld. The balance amount claimed by the appellant and disallowed by the lower authorities is held as admissible. - Decided partly in favour of assessee.
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