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2015 (6) TMI 661 - CESTAT MUMBAI

2015 (6) TMI 661 - CESTAT MUMBAI - TMI - Refund - Cenvat credit of input services used in exported output services - Held that:- On perusal of the impugned order, I find that the first appellate authority has come to the correct conclusion as to that the respondents are eligible for CENVAT Credit of input services and also eligible for refund of the same as they have exported the services under the category of "Business Auxiliary Services". The appellants have also contended that the case is ful .....

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preted in a harmonious manner. The inputs services, without which the quality and efficiency of output cannot be achieved, should be allowed as eligible input services for refund. Based on the above all the input services as referred in Para 11, which were disallowed by the adjudicating authority, are used by the applicant in providing the ‘export' outputs services and are very essential to provide quality output services . In the absence of any evidence controverting the factual findings of the .....

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ved by the impugned order for setting aside the order-in-original. 3. Heard both sides and perused the records. 4. On perusal of the records, it transpires that the respondent herein is engaged in the business activity of PPO and was registered under the category of "Business Auxiliary Services". The respondent has rendered the services to the clients based abroad hence claimed CENVAT Credit of service tax pain on input services used in providing those output services and filed refund .....

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hese three input services have not nexus with the services exported by the respondent and the first appellate authority has erred in setting aside the order-in-original. He would also submit that as per the provisions of Rule 2(l) of Cenvat Credit Rules, 2004, to avail CENVAT Credit, there have to be some nexus with the output service which were exported by the respondent. 6. Learned C.A. appearing on behalf of the respondent reiterates the findings of the first appellate authority wherein it is .....

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s". To come to the conclusion, the first appellate authority has recorded the following findings:- "12. The appellants have also contended that the case is fully covered by the clarification issued by the Circular 120/1/2010-ST dated 19.10.2010 towards para 3.3. provided as under:- "As regards the quarterly filing of refund claims and its applicability, since no bar is provided in the notification, there should not be any objection in allowing refund of credit of the past period i .....

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clearances of ₹ 25 lakh are made. The exporter should be permitted a refund of ₹ 66 lakh (as his export turnover is 66% of the total turnover in the quarter) from the Cenvat credit of ₹ 1 crore availed in April-June quarter. The illustration prescribed under para 5of the Appendix to the notification should be viewed in this light. However, in case of service providers exporting 100% of their services, such disputes should not arise and refund of CENVAT credit, irrespective of .....

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by Call Centres for provision of their output services would qualify as input services and be eligible for taking cvredit as well as refunds. Further, it was clarified in the said Circular that the phrase used in' in the CENVAT Credit Rules and Notification should be interpreted in a harmonious manner. The inputs services, without which the quality and efficiency of output cannot be achieved, should be allowed as eligible input services for refund. Based on the above all the input services a .....

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sued under Rule 5 of the Cenvat Credit Rules, 2004. It has been pointed out by them that Notification No. 5/2006-CE (NT) dated 14.03.2006 issued under Rule 5 of the Cenvat Credit Rules, 2004 interalia provided for refund of unutilized CENVAT Credit on any input or inputs service used in (emphasis supplied) providing any output service exported without payment of service tax. Whereas, as per the definition of the term input service' under Rule 2(l) of the Cenvat Credit Rules, 2004, as input s .....

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nder Rule 2(l) gave rise to the controversial interpretation of the provisions of Notification No. 5/2006-CE(NT) read with Rule 5 ibid which authorized for grant of refund of CENVAT Credit involved in any input service used in providing an output service exported. The adjudicating authority, though, have conceded that the input services, in question, had been used for providing the output services' which had been exported without payment of service tax. But according to them, the legislative .....

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