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2021 (11) TMI 598 - AT - Service TaxRefund of unutilized CENVAT credit accumulated - export of legal services, in terms of Rule 5 of CENVAT Credit Rules 2004 - period from July, 2012 to March, 2015 - HELD THAT:- Only in the case of legal services provided by an individual Advocate or a Firm of Advocates to a business entity located in the taxable territory (emphasis supplied) the recipient is liable to pay the tax and consequently only those cases will fall outside the scope of “output service”. Legal services exported would fall within the scope of “output service” - Even otherwise, in the case of exports in general, the recipient of the service is not liable to pay the tax and hence export services would be output services provided they are not in the Negative List. Once it is established that the Appellants are providing output service they are entitled to take credit of input service. It is an admitted fact that credit proportionate to services provided within the taxable territory has been reversed. After such reversal remaining unutilized CENVAT Credit pertains only to export of legal services and becomes eligible for refund in terms of Rule 5 of CCR and Notification no. 27/2012-CE(NT) dated 18.06.2012 - The ld. Commissioner (Appeals) has also referred to Rule 6 of CCR to maintain his stand that when a service is exempt from tax input credit cannot be allowed. However, sub-section (7) of the said Rule specifically excludes export of services from the relevant provisions of the Rule which disallow input credit. The necessity or otherwise for the appellants to get themselves registered under the Act is not pertinent to the issue. It may however be noted that the appellants have shown sufficient reason for taking registration and the Department had not raised any objection against it or against taking input credit all these years during which returns had also been filed regularly. There is no merit in the impugned orders - Appeal allowed - decided in favor of appellant.
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