TMI Blog2015 (2) TMI 271X X X X Extracts X X X X X X X X Extracts X X X X ..... the business of providing output services by the respondent. Cenvat credit on inadmissible input services must obviously be deducted, but in the present case all the input services are used for providing output services. Therefore this objection has no relevance. The second amount which is sought to be deducted is the input credit on account of domestic service tax liability. We find no logic in deducting this amount. The formula does not allow for such deduction and by its very nature, the formula has already factored this amount in the manner it has been formulated. If Revenue's contention is accepted, the word "Total" in the formula would become irrelevant. Therefore, the grounds of appeal relating to this order-in-appeal are rejecte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sanctioned the entire amount of refund under Notification No. 5/2006 CE(NT) dt. 14.3.2006, issued under Rule 5 of the Cenvat Credit Rules. 2. The facts are that the respondents provided services namely, Business Auxiliary Service and Business Support Service to their principals abroad and their entities. A major portion of the services are exported and only a small portion of the services are provided domestically. Due export of services, the Cenvat Credit on input services accumulates. Notification No. 5/2006-CE(NT) provides a mechanism allowing refund of unutilized input service credit on a quarterly basis. A specific formula is laid down in the notification to determine the amount of refund. Revenue has raised different issues/differ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al, he states that all input services have direct nexus with the business of the respondent and all are eligible input services as per Rule 2(l) of Cenvat Credit Rules, 2004. He also relies on various judgments: (i) CCE Vs. Stanzen Toyotetsu - 2011 (23) STR 444 (Kar.) (ii) CCE. Vs. Bell Ceramics Ltd. - 2012 (25) STR 428 (Kar.) (iii) CCE Vs. Graphite India Ltd. - 2012 (27) STR 130 (Kar.) (iv) CCE Vs. Ultratech Cement Ltd. - 2010 (20) STR 577 (Bom.) (v) Toyota Kirloskar Motor Pvt. Ltd. - 2011 (24) STR 645 (Kar.) However he concedes that, where input services have no nexus with the output service in some cases, the credit on account of such input services may be deducted from the total cenvat credit which is relevant to the f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ave a nexus with the business of providing output services by the respondent. The Ld. Counsel has correctly relied upon the judgments cited above. We feel it not necessary to go into the admissibility of any particular services since in our opinion as already stated the Commissioner has shown the use of every input service in providing the output services. Further, there are a number of High Court and Co-ordinate Bench judgments such as (Ultratech Cement) supra the Tribunal which have held that these are valid input services in relation to output services provided by the respondent, namely Business Auxiliary Service and Business Support Service. Regarding the second ground of appeal in this case, we may refer to the formula provided under n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing any objection. The Ld. A.R. inform us that the two orders-in-original have been passed by different authorities. We note from the records as shown to us by both sides and as agreed by the Ld. Counsel, in this case certain records namely Balance Sheet and Profit and Loss Account had not been submitted to the adjudicating authority. We are not very clear as to what the adjudicating authority wants to examine from these Accounts but, at the same time, in our view these accounts could indicate the export turnover of services which the adjudicating authority may have liked to correlate with the Service Tax returns where such turnover figures ought to have been given. 8. In this view of the matter, we find it appropriate to remand this cas ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
