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TMI Blog2018 (2) TMI 1185X X X X Extracts X X X X X X X X Extracts X X X X ..... credit of service tax availed in respect of certain services which were used in providing the output service. Such refunds were claimed in terms of Rule 5 of CENVAT Credit Rules, 2004. The refund claims were rejected by both the authorities below for the reason that the condition that the payment for export service is to be received by the service provider in convertible foreign exchange was not satisfied. Aggrieved by the rejection of refund claims, the present set of appeals have been filed, which are being disposed of by this common order. 4. With the above background, we heard Mr. Sahilendra Sukhlecha, learned CA for the appellants and Dr. Ezhilmathi, learned DR representing Revenue. 5. After hearing both sides and perusal of the records, we note that one of the conditions for allowing refund is that the proceeds for export of service should have been received in convertible foreign currency. In respect of the present refund claims, the proceeds for export of service were not received directly in foreign exchange but the same was routed by the Foreign Service receiver through M/s. Wells Forgo NA, USA through HSBC Bank. Ultimately the amount was received by the appellant in r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orised dealer in India to the extent specified by the Reserve Bank; or (c) use it for discharge of a debt or liability denominated in foreign exchange to the extent and in the manner specified by the Reserve Bank. (2) A person shall be deemed to have repatriated the realised foreign exchange to India when he receives in India payment in rupees from the account of a bank or an exchange house situated in any country outside India, maintained with an authorised dealer." From the sub-Para (2) of Para 4 above it is very clear that, when a person receives in India payment in rupees from the account of a bank situated in any country outside India maintained with an authorised dealer, the payment in rupees shall be deemed to have repatriated the realized foreign exchange to India. In the present case, the payment in Indian rupees was received from foreign country through Deutsche Bank. Therefore, the said Indian rupee is nothing but foreign exchange repatriated from foreign country to India. Therefore, such payment in rupees is equal to the foreign exchange. The manner of receipt of foreign exchange is provided under Notification No. FEMA 14/2000-RB, dated 3-5-2000 issued by Reserve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n reinsurance company is made through the Reserve Bank of India in conformity with the agreement between the appellant and the foreign reinsurer, and that the remittance that the amount due to the foreign reinsurers as also the brokerage due to the appellant and the balance due to the foreign reinsurer is remitted (and expressed so) in dollars. It is common ground that the entire transaction effected through the media of the Reserve Bank of India is expressed in foreign exchange and in effect the retention of the fee due to the appellant is dollars for the services rendered. This, according to us, is receipt of income in convertible foreign exchange. It seems to us that a two way traffic , is unnecessary. To insist on a formal remittance to the foreign reinsures first and thereafter to receive the commission from the foreign reinsurer, will be an empty formality and a meaningless ritual, on the facts of this case. On a perusal of the nature of the transaction and in particular the statement of remittance filed in the Reserve Bank of India regarding the transaction filed in the Reserve Bank of India regarding the transaction, we are unable to uphold the view of the respondent that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) Pvt. Ltd. vs. CCE, Pune III 2016 TIOL 2828 CESTAT MUM., CST, Mumbai vs. M/s PMI Organisation Centre Pvt. Ltd. 2015 TIOL 2570 CESTAT MUM., AGM India Advisors Pvt. Ltd. vs. CST, Bangalore 2015 TIOL 4035 CESTAT MUM., Mount Kellett Management (I) Pvt. Ltd. vs. CST, Mumbai I 2015 (40) S.T.R. 165 (Tri. Mumbai), Perk Com Software P. Ltd. vs. CST, Bangalore 2017 TIOL 4035 CESTAT BANG. 9. We also note that in the guide to authorized dealers for compilation of the all returns, Reserve Bank of India stipulated method to be followed by the authorized dealers in reporting the transactions in nostro account. RBI stipulated as below :- "3. Every transaction which causes inflow of foreign exchange into India or outflow of foreign exchange from India and affects the position of foreign currency assets or liabilities, is required to be reported to RBI. As these transactions take place by way of debits and credits to the Nostro Accounts maintained by the ADs and Vostro accounts of non-resident banks maintained with the ADs, every debit and every credit to these accounts (and only every debit and every credit to these accounts) are required to be reported. [Exceptions to this rule are (i) sale / ..... X X X X Extracts X X X X X X X X Extracts X X X X
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