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2020 (9) TMI 938 - AT - Service TaxRefund of Service Tax - Information Technology Software Services - Department contends that the Information Technology Software Services was not taxable for the relevant period and it became taxable only w.e.f. 16.05.2008 hence refund under Rule 5 of CCR, 2004 is not available - unregistered premises - nexus between the output services provided and input services availed - HELD THAT:- Notification No. 5/2006 has been amended by the Finance Act, 2010 substituting the words “used for” in place of “used in”. It is also found that it has been clarified that the retrospective changes are made to ensure that the provisions of refund Notification and the CCR are aligned - also, most of the services utilized by the appellants are held to be input services for providing output services in the field Information Technology Services. Moreover, going by the explanation submitted by the appellants before the lower authorities it is found that the services are integral and required for the rendering of output services. Further, as elucidated in CBEC vide Circular No. 120/1/2010 dated 19.01.2010, input services and their nexus with output service needs to be construed in a harmonious manner. Also, there is force in the appellant’s arguments that the Department did not dispute the availment of credit in the first instant and therefore, it is not open for them to deny the same when a refund is filed. Therefore, the appellants are entitled for refund and the impugned orders are not sustainable to that extent. Appeal allowed - decided in favor of appellant.
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