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2013 (1) TMI 521 - CESTAT BANGALORERefund claim u/r 5 of CCR 2004 r.w. Notification No. 5/06 CE(NT) dated 14/3/2006 - unutilized CENVAT credit taken on nine input services claimed to have been used for export of output services - rejection of refund claim recording a finding against nexus between the output services and the input services & in view of Circular No. 120/1/2010 dated 19/1/2010 issued by the Board - period in question April to June 2008 - Held that:- On the question whether a nexus was established by the party between maintenance or repair service (output service exported) and input services, the impugned order has offered no clear and intelligible finding, apart from an observation to the effect that the input services would qualify for availment of credit as per Board's Circular , this part of the appellate Commissioner's order cannot be sustained inasmuch as it is not a speaking order on the issue - the refund ordered by the Commissioner (Appeals) to the extent of the amount of unutilized CENVAT credit on input services claimed to have been used for export of consulting engineer's service requires to be set aside and it is ordered accordingly. The impugned order was passed on 8/3/2010 when the Board's Circular was in force. This circular was not available to the original authority and hence that authority did not have occasion to follow the Board s guidelines. In the fitness of things, that authority should reexamine the question whether the refund claimant has been able to establish a nexus between consulting engineer s service (exported) and each of the input services. Needless to say that, in this regard, the Board s guidelines shall be followed. Period July to September 2008 - Held that:- It is incumbent on the authority to meticulously consider the party's declaration and decide whether the facts declared by them are correct and whether these facts would go to establish a nexus between the output service and each of the input services which the appellate Commissioner has not done here. Mere observation to the effect that the findings of the original authority relating to input services for output services are not convincing is itself unconvincing. The impugned order does not disclose proper application of mind to the nexus issue. The appellate authority appears to have proceeded on the premise that the Board's Circular is the panacea for everything - set aside the aforesaid findings of the Commissioner (Appeals) & remand it to the original authority (which did not have occasion to consider the Board's circular) to reexamine the nexus issue.
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