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2017 (10) TMI 399 - AT - Service TaxRefund of unutilized CENVAT credit - Rule 5 of CCR, 2004 read with N/N. 27/2012-CE dated 18.6.2012 - denial on the ground that the export proceeds were realized in the Indian rupees and not in convertible foreign exchange - Held that: - this issue has been considered by various Benches of the Tribunal and it has been 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, Bank of America, 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 Bank of America, USA that remittances are in convertible foreign exchange. Reliance placed in the case of Sun-Areas Real Estate Pvt. Ltd. [2015 (5) TMI 885 - CESTAT MUMBAI], where it has been 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 u/r 3(2) of Export of Service Rules, 2005 stands complied. The payment received in Indian rupee for which FIRC issued by the Standard Chartered Bank and the payment is routed through foreign bank, shall fulfill 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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