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TMI Blog2017 (10) TMI 23X X X X Extracts X X X X X X X X Extracts X X X X ..... any representation from appellant. 3. Heard Ld. DR and perused the records. 4. The issue that falls for consideration is whether the appellant is eligible for refund of cenvat credit of service tax paid by them on input services, utilised for rendering export of software. 5. Undisputedly, appellant is an 100% EOU registered with STPI for export of software. Appellant filed refund claim under rule 5 of Cenvat Credit Rules, 2004 read with notification No. 5/2006 CE(NT). The said refund claims were rejected by adjudicating authority on many grounds, one being that appellant is not able to show records that they had in fact sufficient credit balance in cenvat credit account. Aggrieved by such an order, an appeal was preferred before the fir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s taxes paid and the same was included in the exported invoice value with the intention of crediting the respective heads of expenditure as and when credit was obtained. On scrutiny of the said documents, if revealed that they are not having any balance in cenvat credit receivable account under the head Advances on the asset side whereas the appellant have shown the service tax paid on input services in their ST-3 returns as credit lying and unutilised for the relevant periods in contravention of their transactions made in the books of accounts. Further the service tax paid on the value of input services and the total sum was reflected as expenditure in their P&L account and arrived at the exported taxable value by adding 15% mark up which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by the lower authority. I observe that as per the appellants own records which shows that there is no balance of cenvat credit for which they filed refund claims and as per the conditions and limitations set out in the appendix 4 to Notification No. 5/2006 CE (NT), dated 14.03.2006 i.e. the refund is allowed only in those circumstances where a manufacturer or provider of output service is not in a position to utilize the input credit or input service credit allowed under Rule 3 of the said rules against the goods exported during the quarter or month. In the instant case the appellant is not eligible to claim refund or cenvat credit on the input services of which there are no balances in their books of accounts. The Boards circular referr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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