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2017 (7) TMI 1128 - CESTAT MUMBAIRefund of CENVAT credit - export of services - denial of refund paid as service tax to providers of input services used in rendering 'scientific and technical consultancy service' to recipients outside India - denial of refund as held to be ineligible while some others could not be linked to the output services that were exported leading to disallowance of claim - place of provision of service - Held that:- An identical dispute had been decided by this Tribunal in Commissioner of Central Excise, Pune - I v. Sai Life Sciences Ltd [2016 (2) TMI 724 - CESTAT MUMBAI], where it was held that the benefit of the service accrued to the foreign clients outside the Indian territory, by no stretch of imagination can it be said that there was no export of service - refund to be allowed. Challenge to sanctioned amount in review proceedings - no SCN issued - whether it was legal and proper for the appellate authority to hold to the detriment of an assessee by recourse to a belated and indirect notice in the form of an appeal by Revenue? - Held that:- The statute does not specifically provide for enhancement of refund beyond that was claimed but specifies that there is scope for enhancement of that which was restricted subject to sufficient cause being shown to the respondent. This would presume that the enhancement detriment in appeal is limited to the show cause notice with which the proceedings leading to the appeal commenced. Such a show cause notice has not been issued in the present instance. The proper course of action for Revenue to dispute the sanction of refund claim by the original authority should have been the issue of a notice under section 73(1) of Finance Act, 1994. The failure to issue such a notice stultifies the present proceedings before the first appellate authority. The impugned order fails to meet the requirement of the statute and is consequently set aside. Appeal allowed.
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