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2016 (4) TMI 691 - AT - Service TaxRefund of Cenvat credit - Notification No.27/2012-CE (NT) dt. 18.6.2012 read with Rule 5 of CENVAT Credit Rules, 2004 - Export of service and receiving foreign exchange as consideration - Lower authority rejected the claim on certain procedural lapses - Held that:- on the objection that invoice submitted by the service provider does not indicate all particulars could have been avoided if the lower authority had called for the details of the purchase order and other correspondence and the terms of understanding between the appellants and service providers. Appellants have consistently taken a stand that sub agents were engaged by them for procuring orders relating to export of services provided by the appellants. Once the service in question had been held to be eligible for the credit, the lower authorities should have verified the nature of payment effected on such services and the appointment of said sub agents who had provided such service. It should not be difficult for the appellants to give the particulars of such sub agents and the manner in which such services were to be provided. Therefore the rejection of invoices on the ground of lack of particulars is not correct. On the ground that there was no agreement between the service providers and the appellants for providing the service. It is the ground of the Assistant commissioner that the copy of the agreement was given only after issue of Show cause notice. This ground for rejection is also not tenable as the genuineness of the documents has not been disputed. It is also noticed that the claim is rejected for want of methodology for the quantification of the commission paid. It is observed that so long as the commission paid is not disputed, which can even be verified from the bank statements or certificates from the bank, the rejection of claim for want of quantification of the commission paid is not legally tenable. Another ground of rejection is that the services exported are treated as 'exempted services' for which no credit is admissible. It is observed that under Rule 6(8) of the Cenvat credit rules, services provided will not be an exempted service, if conditions prescribed under Rule 8(a) and (b) are satisfied. The lower authority had not examined whether these conditions are satisfied. Also bank realisation certificates has not been correlated with the export invoices. In the event of non-realisation of remittances for export of services which is also governed under FEMA Act, the lower authority should have examined whether any action was taken under the FEMA against the appellants. In absence of any such proceedings, It cannot be presumed that the remittances of export of services are not correlatable. Keeping in view that claim of refund under Cenvat Credit Rules is part of the export promotion scheme without properly examining the records, such benefits cannot be denied, since the records in question can be properly verified by the Assistant commissioner, who had passed the order-in-original. I, therefore, remand the entire matter to the original authority for examining the issue afresh. Appeal disposed of
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