TMI Blog2012 (10) TMI 34X X X X Extracts X X X X X X X X Extracts X X X X ..... ive - If these benefits to which they are legally entitled to and is conferred on them by the policies of the Government as well as the statutory provisions is not settled expeditiously, the very object of granting these benefits would be defeated and the enthusiasm on part of these exporters to carry on the business is seriously hampered. Therefore, it is of utmost importance that these refund claims are settled expeditiously - revisional authority directed to settle these refund claims - 98 of 2010 - - - Dated:- 25-8-2011 - N. Kumar and Ravi Malimath, JJ. REPRESENTED BY : S/Shri Prasad Paranjape and P. Dinesh for M/s. PDS Legal, Advocates Solicitors, for the Appellant. Shri C. Shashikantha, Advocate, for the Respondent. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and support services to group companies outside India. The engineering design and support services in the nature of developing high end technical studies, developing solutions that captures the science of technical study and technical modeling and stimulation service in relation to oil fields, refineries and petrochemical installations. All input services received by the assessee are used only in relation to the export of consulting engineering service and in the absence of any other activities being performed by the assessee, the input services cannot be used for any purpose other than in relation to export of taxable services. Therefore they claim CENVAT credit in respect of 20 input services. They also relied on the judgment of the Trib ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In fact, there were number of appeals where similar question was involved. Therefore the Tribunal clubbed all the appeals and by common order, disposed of the appeals setting aside the order of the Appellate Commissioner and remanded the matter back to the Revisional Authority, however, without disturbing the refund granted by the Revisional Authority in respect of 5 services. Aggrieved by the said order, the assessee is in appeal. 5. This appeal came to be admitted by this Court to consider the following substantial question of law : (i) Whether the Tribunal was correct in passing the impugned order, which was beyond the scope of the Show Cause Notice as the Show cause notice did not dispute the powers of the Central Government to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ision says, what the rule framed under the statutory provisions says and how, any circular issued by the Department runs counter to those statutory provisions, before declining to give effect to the said circular. Merely saying that circulars are contrary to the statute and rules, do not satisfy the legal requirement. The Tribunal has ignored the fact that these circulars are issued in terms of the powers vested under the statutory provisions, which also will have the effect of statutory provisions. It cannot be lightly ignored. 7. In the instant case, there is no question of interpretation of law. There is no question of any procedural irregularity, but still, the Tribunal proceeds on the footing that procedural law is hand made of justi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e claim in respect of 5 services, again they have not given any reasons for rejecting the claim of the assessee in respect of 10 services. The bald statement is that there is no evidence to substantiate the nexus between the input service and output service. When the assessee has produced material and also has given tabular column showing how input service is utilized in the output service, the minimum that was required of the revisional authority as well as the appellate authority is to refer to what they have said and then say what they feel about it. Therefore, both the orders passed are wholly unsatisfactory. It is here the Tribunal is not justified in observing that the officials sanctioning refund have to necessarily examine if the cr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er the claim for refund by the assessee keeping in mind the statutory provisions, rules, as well as the circulars and notifications issued from time to time by the Department. The revisional authority shall ignore all the observations made by the Tribunal in so far as the applicability or correctness or legality of the circulars issued by the department, while deciding the claims of the assessee on merits and in accordance with law. (iii) These refund claims are made in the year 2008. Already more than three years have elapsed. These are in the nature of incentives given to the exporters to encourage them from getting the precious foreign exchange to the Country and also to see that the price which they keep in the international market i ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
