TMI Blog2016 (12) TMI 20X X X X Extracts X X X X X X X X Extracts X X X X ..... % EOU are not criteria for rejection of refund. - Appeal allowed - Decided in favor of the assessee. - Appeal No. E/20066/2014 - A/31188/2016 - Dated:- 26-10-2016 - Ms. Sulekha Beevi, C.S., Member(Judicial) Shri. Suresh Astekar, Advocate for the appellant Shri. P.S. Reddy, Assistant Commissioner (AR) for the Respondent ORDER [ Order per Sulekha Beevi, C.S. ] The appellant is aggrieved by the rejection of refund claim filed by the appellant under Rule, 5 of CENVAT Credit Rules read with Notification No. 5/2006-CE (NT) dated. 14.03.2006. 2. The appellants are registered as manufacturer of Processed Human Hair under 100% EOU. The status of the appellant was previously that of proprietorship and converted later to p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... od. However, the Commissioner(Appeals) had found the issue of time bar in favor of the appellant. Aggrieved by the rejection of refund claim on the above ground, the appellant is now before the Tribunal. 4. On behalf of the appellant, the Ld. Counsel Shri. Suresh Astekar submitted that due to ignorance there was omission to pay service tax on sales commission agent service during the period 2009 -2010 to 2011. The appellants there after on being pointed out by department, the service tax was paid and availed credit on the said service. He submitted that these services as well as CHA services were availed for the purpose of export of finished products and that the denial of the refund claim that the input services do not have nexus with e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt is not entitled to the refund. 6. I have heard the rival submissions. At the outset it has to be stated that the issue of time bar has been held in favor of appellants by Commissioner (Appeals). The issues left before me is whether rejection of refund claim on the ground that sales commission agent services and CHA services are not qualified as input services is legal and proper. The appellant has availed credit on CHA services which also has been denied refund stating the reason that CHA services do not have nexus with export of goods. Undisputedly appellant exports the finished goods. The CHA service as well as commission agent service can be undoubtedly said to be services which are availed and utilized by the appellant for the exp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y deals with the procedure that needs to be adopted in case o the new refund claims. However, to resolve the disputes arising on account of the wordings/illustration provided in the notification, the same is being amended retrospectively (w.e.f. 14.03.2006) (Clause 73 of the Finance Bill, 2010 refers) so as to resolve the disputes in respect of pending cases as well. Therefore to visualize the entire revamped and simplified refund scheme, both the amending notification and the Finance Bill provision must be read in conjunction. A note on the issue is enclosed as Annexure C. Refund of accumulated CENVAT credit to exporters: Amendments in Notification No. 5/2006-C.E. (N.T.) 3) To give legal backing to the above said circular, lead ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n claimed is also eligible for refund. The refund claims should be calculated only on the basis of the ratio of the export turnover to the total turnover of the claimant. Thus, if the CENVAT credit available to the exporter at the end of the quarter, or month, as the case may be, is ₹ 1 crore, and the ratio of export to total turnover during the quarter is 50%, then ₹ 50 lakh should be refunded to the exporter. The essence of the changes is that refund shall be available for all goods, or input services, on which CENVAT is permissible and should be processed accordingly. Further, refund of CENVAT should not be linked to CENVAT taken in a particular period only. Further the decisions relied by the Ld. Counsel have held the i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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