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2016 (12) TMI 161 - AT - Service TaxRefund claim - cenvat credit that remains unutilized in the cenvat account due to non-submission of certificate of receipt of the payment in convertible foreign currency - whether various input services like service tax paid on insurance services and the service tax paid on food vouchers (meal coupons) are eligible for availing cenvat credit or otherwise? - Held that: - On perusal of the certificates given by appellant’s bank i.e. Deutsche Bank, we find that the appellant’s bank has clearly recorded that the amount is credited to their account, but the certificate is for foreign inward remittances and vide their letter dated 30.1.2012, they had specifically stated that the entire foreign inward remittance is received in convertible foreign exchange. We also were informed that there is no dispute as to the exports undertaken by the appellant. In our considered view, when there is no dispute as to the exports of the services rendered by the appellant, and no dispute as to the availment of the cenvat credit or eligibility thereof, the only reason for denying cenvat credit that the amounts are not received in convertible foreign currency seems to be irrational way of denying the legitimate refund to an assessee - reliance placed on the decision of the case of Sun-Area Real Estate Pvt Ltd Versus Commissioner of Service Tax, Mumbai-I [2015 (39) S.T.R. 897 (Tri. - Mumbai)] where it was held that certificates for a produced of foreign inward remittances, though in Indian rupees, cenvat credit cannot be denied as it is a certificate of foreign inward remittances. Cenvat credit availed on the service tax paid on insurance services - Held that: - the lower authorities have denied the refund only on the ground that the said insurance also covers the dependents of the employees who are insured - it is held that such cenvat credit cannot be denied and refund has to be sanctioned. Service tax credit of the service tax paid on the meal coupons - Held that: - such credit is available and refund needs to be sanctioned if the services are exported. Appeal allowed - decided in favor of appellant.
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