Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2018 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (3) TMI 771 - AT - Service TaxRefund claim of unutilized CENVAT credit - export of services - rejection on the ground that the output services of the appellant, which is call centre services is exempted from levy of service tax in terms of Notification No. 8/2003 dated 20.6.2003 - whether assessee is eligible for refund of unutilized credit u/r 5 of CCR 2004 when N/N. 8/2003 exempts the levy of service tax on call centre services which are the output services of the respondent? Held that: - a service provider who provides an output service which is exported without payment of service tax shall be allowed refund of unutilized CENVAT credit used for providing the output service. The N/N. 5/2006-CE(NT) dated 14.3.2006 lays down conditions and limitations. This notification does not put forward any condition as alleged by the department. The only condition provided in Rule 5 is that the facility of refund will not be available if the manufacturer or service provider claims rebate of duty / service tax. The idea of Rule 5 is to avoid export of duty/taxes. Thus, the output service provider is given the benefit to claim refund of the taxes paid on input/input services used for providing output service. In KPIT Cummins Infosystem Ltd. vs. Commissioner of Central Excise, Pune I [2013 (7) TMI 124 - CESTAT MUMBAI], the refund was rejected for the reason that the output services viz. software development and consultancy service during the relevant period was an exempted service. The Tribunal held the availment of credit to be proper even though output services are not taxable. The Commissioner (Appeals) has rightly held that the respondent is eligible for refund of CENVAT credit even though the output services is exempted from the levy of service tax under N/N. 8/2003. Appeal dismissed - decided against Revenue.
|