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2016 (12) TMI 1524 - AT - Service Tax100% EOU - Rejection of refund claim - input services availed for export of services - N/N. 5/2006-CE (N.T) dated 14.03.2006 - rejection on the ground that software services were not taxable during the relevant time - Held that: - The lower authorities have taken the view that input services availed during April 2006 to March 2007 are not relatable to the services exported in September 2007. This situation has arisen from the fact that the credit of input services has not been taken during the period for which the refund has been claimed. This brings us to the question whether credit availed for a period prior to the quarter/month for which the refund has been claimed is eligible for refund or not? This specific issue has been considered at length and decided in favor of the appellant in the case of Sai Advantium Pharma Ltd.[2015 (3) TMI 1230 - CESTAT BANGALORE], where it was held that 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 - rejection of the refund claim filed under Notification 5/2006-CE (NT) is without justification - appeal allowed - decided in favor of appellant.
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