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2021 (7) TMI 1089 - AT - Central Excise100% EOU - CENVAT Credit - input services - Event Management services - Outdoor Catering services - Mandap or Shamiana Service - Rent-a-Cab service - denial on the account of nexus and also on the ground of absence of such services will not directly have an impact on the quality and efficiency of provisions of taxable services - HELD THAT:- The appellant is a 100% Export Oriented Unit registered under Software Technology Park of India (STPI) scheme and has been availing input services for rendering its output services. Appellant has been claiming refund of accumulated tax credit under Rule 5 of CENVAT Credit Rules, 2004. The adjudicating authority does not dispute the usage of impugned input services for providing the output services but has disallowed the credit only on the ground that these are not connected with the business activity or not necessary for providing output service. In this regard, it is noted that once for the previous period such nexus has been accepted by the department than there is no basis for denial of such nexus for the subsequent period - also, it is a settled position of law that there cannot be two different yardsticks i.e., one for allowing refund and the other for deciding the eligibility of CENVAT credit. In the case of CST, DELHI VERSUS CONVERGYS INDIA PVT. LTD. [2009 (5) TMI 50 - CESTAT, NEW DELHI], it has been held by the Division bench of the CESTAT, Delhi that there cannot be two different yardsticks, one for allowing refund and another for deciding eligibility of CENVAT credit. The impugned order denying the CENVAT credit on impugned services is not sustainable in law more so when refund relating to the impugned services has already been granted to the appellant - Appeal allowed - decided in favor of appellant.
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