TMI Blog2015 (11) TMI 1561X X X X Extracts X X X X X X X X Extracts X X X X ..... ue of onsite services shall be taken in both, i.e., export turnover as well as in total turnover and the ratio of the refund shall be computed accordingly. Rejection of refund - Club membership services – Held that: - the service is of CII and Business Association which is used for providing output services. Thus, the Cenvat credit in respect of such membership of business associations has been allowed. This has been held in the case Finolex Cables Ltd. v. Commr. of C. Ex, Pune-I 2015 (12) TMI 1487 - CESTAT MUMBAI – matter remanded – appeal disposed off. - ST/89104, 89485 & 89664-89665/2013 and Cross Objection Nos. ST/CO/91191, 91084, 91086 & 91087/2014-Mum - Final Order Nos. A/85123-85130/2016-WZB/SMB - Dated:- 27-11-2015 - Shri Ram ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... neither taken into export turnover nor into total turnover. Accordingly, ld. Commissioner has allowed refund which was rejected by the original authority. The other issues in the appeals are that refund was rejected on the club membership services and some other services. The appellant is contesting the refund related to services of Club Membership, however all other services which was held by the lower authority as inadmissible are not being contested. The Revenue, being aggrieved by the impugned orders filed these appeals on the ground that onsite service provided by overseas branch of the appellant is not in the nature of export services, therefore, the same should not be taken in the export turnover however since the said value is part ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te services provided through their overseas branches is export of service in terms of Rule 3(2)(b) of Export of Service Rules, 2005 prevailing at relevant time. In this provision the only condition to constitute a service as export of service is that the payment of such service is received by the service provider in the convertible foreign exchange. Therefore, whether service is provided from India or through branch of the respondent in overseas, the payment of services is received in convertible foreign exchange in India by the recipient, therefore, it is export of services of the respondent. He further submits that in this position, the service value of onsite service through overseas branches is export and the same should be added in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n on input services during the given period x export turnover + Total turnover. Illustration. - If total credit taken on input services for a quarter = ₹ 100 Export turnover during the quarter = ₹ 250 Total turnover during the quarter = ₹ 500 Refund of input service credit under Rule 5 of the Cenvat Credit Rules, during the quarter 100*250/500, i.e., ₹ 50. Explanation. - For the purposes of condition no. 5, - 1. Export turnover shall mean the sum total of the value of final products and output services exported during the given period in respect of which the exporter claims the facility of refund under this rule. 2. Total turnover means the sum total of the value of, - (a) all ou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ), (zzzzi), (zzzzk) and (zzzzl) of clause (105) of section 65 of the Act, be provision of such services as are performed outside India : Provided that where such taxable service is partly performed outside India, it shall be treated as performed outside India; Provided further that where the taxable services referred to in sub-clauses (zzg), (zzh) and (zzi) of clause (105) of section 65 of the Act, are provided in relation to any goods or material or any immovable property, as the case may be, situated outside India at the time of provision of service, through internet or an electronic network including a computer network or any other means, then such taxable service, whether or not performed outside India, shall be treated as the tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the following conditions are satisfied, namely :- (a) [***] (b) payment for such service is received by the service provider in convertible foreign exchange. Explanation. - For the purposes of this rule India includes the installation structures and vessels located in the continental shelf of India and the exclusive economic zone of India, for the purposes of prospecting or extraction or production of mineral oil and natural gas and supply thereof. In terms of above sub-rule (2)(b), the services shall be treated as export if payment of such services is received by the service provider in convertible foreign exchange. In the present case though the services provided onsite through the overseas branch of the respondent ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
