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2017 (9) TMI 999 - AT - Service Tax100% EOU - refund claim - input services availed for the services exported - denial on the ground that the export realization is shown in Indian Currency - Rule 3(2)(b) of Export of Service Rules, 2005 - 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. Similar issue decided in the case of Sun-Areas Real Estate Pvt. Ltd. vs. CST, Mumbai-I [2015 (5) TMI 885 - CESTAT MUMBAI], where it was held that even though the appellant received the payment in Indian rupees but in view of the FEMA Notifications issued by the RBI, the same is deemed to be in convertible foreign exchange and accordingly the condition as provided under Rule 3(2) of Export of Service Rules, 2005 stands complied. 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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