Contact us   Feedback   Subscription   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2015 (11) TMI 905 - CESTAT MUMBAI

2015 (11) TMI 905 - CESTAT MUMBAI - TMI - Refund of CENVAT Credit - determination of amount to be refunded for export of services for the relevant period - amount of CENVAT credit restricted as per service tax return for the quarter - input invoices were not available for verification - Notification No. 5/2006C.E. (N.T.) dated 14/3/2006 - Held that:- CENVAT credit cannot be restricted to the amount availed & as shown in the ST-3 returns for a quarter. It is refundable to the extent of accumulate .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

missing invoices is concerned, the appellant is given opportunity to produce the invoices which shall be considered, as per Rules, at the time of hearing in the remand proceedings. The appellant during the course of hearing have also produced a copy of ST-3 return, filed on 23.07.09 relating to the period under consideration. - adjudicating authority shall peruse his records as well as the documents produced in support of the balance refund claim - Matter remanded back - Decided in favour of as .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

TPI) under the STPI scheme. The appellant exports 100% of its output services. Under the provisions of Rule 5 of the CENVAT credit rules, in order to promote exports, provision had been made that such accumulated credit can be refunded to the exporter subject to the conditions as provided. Notification No. 5/2006C.E. (N.T.) dated 14/3/2006 provides the conditions, requirements and limitations for the obtaining refund of such accumulated input tax credit. According to the said notification refund .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

d down under the export of service rules as the case may be. It is further provided that claim for refund be submitted not more than once for any quarter, in the calendar year and further provided that where the average export clearance of the final products or the export services in value terms is 50% or more of the clearances of final products or services as the case may be, in the preceding quarter, or the claim is filed by the Export oriented unit, the claim for such refund may be submitte .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ing the realisation of the export proceeds. It is further provided that the refund is to be allowed only in those circumstances where the assessee is not in a position to utilise the input credit or input service credit, allowed under Rule 3 of the said Rules, against goods exported during the quarter or month for which the claim relates. It is further provided that refund of unutilised input service credit will be restricted to the extent of the ratio of export turnover to the total turnover fo .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

to the nexus in respect of the inputs or input service with the output product or service. Secondly the officer processing refund find it difficult to correlate goods or services, covered under one invoice with respect to the specific consignment of export or specific instance of export of service, for the difficulty with respect to large number of invoices which have to be considered for a particular refund period. Further although the notification provides that refund claim should be filed qu .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

rent rules in CENVAT Credit Rules have to be construed in a harmonious manner. It is further clarified that CENVAT Credit Rules, 2004 also gives vide scope for the input services to provider of output services, by indicating in its ambit services used for providing an output service", and it is further provided in para-3.1.2, the phrase used in mentioned in Notification No. 5/2006-C.E. (N.T.) to show the nexus also needs to be interpreted in a harmonious manner in the case of the absence of .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

n account of the fact that these offices run on 24 X 7 basis and as such transportation and provision of food for the employees are necessary, which the employer has to provide to its employees to ensure that output services are provided efficiently. Further it is provided that in view of the larger manpower required by BPO and call Centres, service tax paid on manpower recruitment agency service would be eligible for taking the credit and the refund of the same. On the point of correlation of i .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

n and the nexus between the inputs/input services and the export. The exporters are also advised to provide a duly certified list of invoices. The Department officers are only required to make a basic scrutiny of the documents and, if found in order, sanction the refund within one month. In view of the simplified scheme under Notification No. 41/2007 read with Notification No. 17/09 it was decided that similar scheme shall be followed for refund of CENVAT credit under Notification No. 5/2006C.E. .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

s refund. The declaration be certified by a person authorised by the board of directors or the proprietor or partner as the case may be. It is further prescribed that where refund is more than ₹ 5 lakhs, the declaration should also be certified by the Chartered Accountant who audits the account of the exporter for the purposes of Companies Act or under the Income Tax Act, as the case may be. Further provision is made that the Asst. Commissioner or Dy. Commissioner may after verification of .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

objection in allowing refund of credit of the past period in subsequent quarters. It is possible that during certain quarters there may not be any export and therefore the exporter does not file any claim. However it is seen that the exporter receives input services or inputs during this period. For example, an exporter may avail of Rs. one crore input credit in the quarter April-June. However there is no export made in this quarter, so no refund is claimed. The input credit is thus carried by t .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

order. Such exporter may be asked to file a declaration to the effect that they are exporting 100% of the services, and, only if it is noticed subsequently that the exporter had provided services domestically, the proportional refund to such extent can be demanded back from him. As regards the incomplete invoices, the Department shall take a liberal view in view of the various judicial pronouncements. It is further stated that strict correlation is not required in case of refund under Rule 5. T .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

en followed, and part of the refund have been rejected in each of the period for the reasons- amount of CENVAT credit not considered by the auditor and input invoices were not available for verification. As regards this the appellant contends that the same needs to be allowed subject to the invoices as produced during the re-adjudication or remand proceedings. The other ground being, amount of CENVAT credit restricted as per service tax return for the quarter. The appellant urges that this is no .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

fices, but no separate books of accounts are maintained in each and every office. Although services are received at its various offices, but the whole accounting and payment is done at the registered office and as such the disallowance on this ground is bad and fit to be set aside. The next ground is - service tax in respect of meal coupons (Sodexo) is allowable, as provided to ensure canteen facility for employees. Learned Counsel for the appellant urges, some invoices are missing or were missi .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ppeals) who have been pleased to uphold the disallowance of the part refund, upholding the disallowance on the basis of the credit availed, as disclosed in the ST-3 returns for the quarter. Refund is given for the CENVAT credit availed during the period, to which the refund relates but could not be utilised. The appellant is under obligation to keep the records maintained in order. 6. Having considered the rival contentions, I find that the matter needs to be re-considered in the light of the di .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version