9911796707
TMI Blog2011 (3) TMI 260X X X X Extracts X X X X X X X X Extracts X X X X ..... ied in Rule 3 of the Export of Services Rules, 2005. The appellants are also recipient of various services on which they had reimbursed the service tax charged by the provider of the services and such services are inputs to them for providing output service. Rule 5 of the Export of Services Rules, 2005 provides for rebate of duty paid on excisable inputs and cess paid on input services used in providing taxable exported services. Accordingly, the appellants filed rebate claim of Rs. 4,84,426 and Rs. 11,40,237 for the period Aug., 05 to Nov., 05 and Dec., 05 to Jan. 06 respectively, under Notification No. 12/2005-ST, dated 19-4-2005 issued in terms of the above rule show-cause notice dated 8-8-2006 was issued proposing rejection of the refund claim on the ground that the services exported were not taxable as the appellants were registered with STPI and the service exported was "Software Engineering Service" which was exempt from payment of tax; vide the Order-in-Original dated 23-3-2007, the claim was rejected; vide Order-in-Appeal dated 23-7-2007, the lower appellate authority rejected the assessees' appeal holding that the service was mere conversion of 2D drawing of the client in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hnical Writing etc. 5. System Support Team - Takes care of the entire support for Installation and Maintenance of Engineering Software for Design Centre operations. This group also supports in Customizing Pro-E/Team Centre Engineering Team Center Enterprise to suit Design requirements. 6. IT Support Team - The team takes care of Maintenance and support activities for the IT Infrastructure and the Network connectivity. The focus is on minimizing Network losses and enabling seamless connectivity with the enterprise. 7. Embedded Systems Team - The team provides Engineering development services for embedded electronic and electrical control systems for engine, machines and information systems. The primary Process Partners are CAT Electronics and 10G. Why CAT EDC-INDIA? CAT EDC-India, being part of Caterpillar Inc., has the unique advantage to access and maintain the restricted information, highly confidential. Team leaders have a good exposure to Caterpillar way of Engineering and adequate training on Corporate Product and Process Standards. Expertise on I-DEAS Master Series 10ml, NASTRAN, CUBIT and Pro-E Wildfire-2. Scalable Engineering Resource ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 33; Creation of Service Tools - Modelling and Detailing on Pro-E �� Creation of Parts Manual from Pro-E Models �� Design and Detailing on Caterpillar SDP - Fluid line �� Design and Detailing on Caterpillar SDP - Electrical �� Pro-E/EDN Creation and EDS Upload of EDN �� RASTAR Image Creation and Upload �� EDS - Phase 1 and Phase 2 Checking and Approval �� I-MAN Phase 1 Release for WLED �� Re-Engineering and Reverse Engineering �� Top Down Design and Detailing �� Virtual product auditing �� Supporting various NPI programs for various Business Units. Analysis services: �� Linear Static Analysis �� Modal Analysis �� Contact Analysis �� Bolted and Welded Joint analysis �� Fatigue and Life Estimation �� Impact Analysis �� Fluid flow Analysis �� Performance Analysis &nbs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... procedures are versatile and can be modified easily based on the project need. Preparatory Stage: The Team Leader assessees the specification requirement, data adequacy and modelling and drafting practice required. This ensures creating consistent features during modelling and drawing creation and adherence to standards. In Process: Each team has at least one Quality Team Member (QTM) to ensure adherence to Specifications and Quality requirements based on the Quality Check Sheets. During the model & drawing creation, 100 per cent visual and electronic quality check is performed on every part, sub-assembly and assembly. This check is designed for compliance with the acceptance criteria and quality standards as defined in the quality specification. Pre-Delivery: Prior to delivery to customer the team ensures 100 per cent adherence to the specifications, modelling and drafting practices, as requested by the customer. 4. From the above it is seen that the service rendered by the appellants is not merely of converting 2D drawing of the client into 3D drawing as held by the authorities below. Software is utilised by the assessees for rendering services ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is "Consulting Engineer's Service" and consequently their claims for refund are admissible and, therefore, answer the impugned issue relating to claim under Rule 5 of Export of Services Rules, 2005 read with Notification 12/2005-ST, in favour of the assessees. 6. The other issues arising for determination in these cases are:- (i) Whether the rebate is eligible when the declaration is not complete. (ii) Whether the input services has been provided at Engineering Design Centre at Taramani or at their factory at Tiruvallur. (iii) Whether rebate on input services which are not directly used in the output services can be sanctioned. (iv) Whether input service charges on telephone and bandwidth charges which appears to be provided at Tiruvallur factory can be sanctioned. (v) Whether the condition regarding the receipt of payment in foreign currency has been utilised. (vi) Whether rebate claim can be sanctioned in respect of capital goods. (vii) Whether rebate claim can be sanctioned in respect of Additional Customs Duty. These issues have not been considered on the ground that it is unnecessary to do so once it is decided t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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