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2017 (6) TMI 1109 - AT - Service Tax100% EOU - refund of unutilised CENVAT credit - Rule 5 of CCR, read with N/N. 5/2006-CE dated 14.3.2006 as amended - rejection on the ground that as per FIRCs, the payment is received in Indian rupees and hence Rule 3(2)(b) of Export of Service Rules, 2005 is not satisfied - case of appellant is that realisation is in foreign exchange so as to protect from the exchange rate fluctuations for which their bankers had been instructed by them to convert foreign exchange realisation into Indian rupee and credit to their account. Held that: - this issue has been considered by various Benches of the Tribunal and it has been held consistently held that merely because payment is received in Indian rupee, it cannot be said that payment against export has not been received in convertible foreign exchange as provided in Export of Service Rules, 2005. Since the Indian rupee is received from the recipient of services through their foreign bank, Silicon Valley Bank of USA, the receipt of Indian rupee shall be treated as convertible foreign exchange. Further, it is also clearly certified in the FIRC issued by the Standard Chartered Bank that remittances are in convertible foreign exchange. Reliance placed in the case of Commissioner of Service Tax, Mumbai Versus M/s PMI Organization Centre Pvt. Ltd. [2015 (12) TMI 414 - CESTAT MUMBAI], where it was held that It is clear that payment received in Indian Rupees for which FIRC issued by the bank and payment is routed through foreign bank qualifies the condition of payment 'convertible foreign exchange', therefore on this ground refund cannot be rejected. Payment received in Indian rupee for which FIRC issued by the Standard Chartered Bank and the payment is routed through foreign bank, shall fulfil the condition of payment (convertible foreign exchange) and therefore, the denial of refund on this ground is not sustainable - appeal allowed - decided in favor of appellant.
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