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2016 (10) TMI 485 - CESTAT CHANDIGARHRefund claim u/r 5 of CCR, 2004 - Notification No. 5/2006-CE (NT) dated 14/3/2006 - input service - Mandap Keeper - Outdoor catering - event management - interior decorator - storage and warehousing - technical testing and analysis - erection commissioning and installation - Pandal and Shamiana - photography - cable services - renting of immovable property - Held that: - The dispute is eligibility of such credit for the purpose of refund under Rule 5. First of all, the eligibility of certain input services for credit purposes is being disputed and denied by the Original Authority during the course of processing the refund claim under Rule 5. The correct course of action would be to decide the eligibility of various input services for credit and thereafter in the refund proceeding decide the correctness of the claim in terms of the provisions of Rule 5 readwith the relevant notification. Such process has not been followed in the present cases. Board vide its circular dated 19/1/10 clarified that there cannot be two yard sticks, one for availing credit and another for granting refunds. One way to interpret the eligibility of credit is to check whether the absence of such input services would adversely impact the quality and efficiency of the exported service. If the answer is in affirmative the input service should be held as eligible for credit. The decision in the respondent's own case [2010 (8) TMI 47 - PUNJAB AND HARYANA HIGH COURT] relied upon where it was held that Any service cannot be disqualified on the basis that the same has only peripheral connection with the output service as long as it is proven the same has been used in providing export services. Once it is established that the said services have been used for providing the output service, rebate claim becomes admissible subject to verification of the payment of service tax on the said services. If the documents contained basic details of service availed, tax paid, the details of service provider and service recipient, the credit cannot be denied on certain procedural grounds. The fact that the service have been utilized and tax on such services have been paid is the basic issue to be satisfied. If there is no dispute on these requirements, denial of credit on certain technicalities cannot be sustained - refunds allowed - appeal rejected - decided against Revenue.
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