TMI Blog2018 (8) TMI 494X X X X Extracts X X X X X X X X Extracts X X X X ..... o total turnover. Since the TRU has clarified the legislative intent behind the amendment of Rule 5 of the Rules, explaining that no nexus need to be established, denial of refund benefit on sole ground of non-establishment of nexus cannot be sustained for judicial scrutiny - The refund benefit denied to the appellant in respect of those disputed services is not proper and justified and the appellant should be entitled for the benefit of refund of service tax paid. Nonsubmission of invoices - non-payment of value of services to the overseas vendors and non-submission of document - showing payment of service tax on the import of services - Held that:- The relevant documents are presently available with the appellant, which have also been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... axable service under the head business support service . The appellant also registered with the Software Technology Parks of India (STPI) as a 100% export-oriented unit. The appellant avails cenvat credit of service tax paid on the input services used/utilized for providing the output services exported by it. During the period April 2012 to September 2014, the appellant had filed refund applications under Rule 5 of the rules, claiming refund of service tax paid on the input services used for exportation of the output service. The refund applications filed by the appellant were adjudicated by the department wherein, in respect of some of the taxable input services, the refund benefit was extended and in some other cases, the benefit were de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ellant is not contesting for the refund benefit. With regard to the issue regarding establishment of nexus between the input services viz., renting of immovable property, cleaning, works contract, real estate, management, maintenance or repair and courier service, the learned Advocate submits that the appellant is a 100% export-oriented unit and the output service provided by it is entirely exported out of the territorial waters of India. Thus, he submits that none of the disputed services have been used by the appellant for providing the output services, for consumption within the country. Accordingly, he contended that since the disputed input services were used and utilized in entirety for exportation of the output service, the nexus bet ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tax paid on renting of immovable property and cleaning services. 4. On the other hand, learned DR appearing for the Revenue reiterates the findings recorded in the impugned order. He further submits that the disputed services are not conforming to the definition of amended input service with effect from 1.4.2011 inasmuch as the phrase activities relating to business appearing in the unamended rules, has specifically been deleted in the present definition of input service. Thus, he contended that the appellant should not be eligible for the refund benefit in respect of service tax paid on the disputed services. 5. Heard both sides and perused the records. 6. Since the appellant concedes that it is not contesting disallowance of re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... etter dated 16.3.2012, has clarified that the new scheme introduced by substituting Rule 5 does not require the kind of correlation between exports and input services, which were hitherto provided under the unamended rules. It has been further clarified that service tax paid on the input services will be entitled for refund, on the basis of the ratio of the export turnover to total turnover. Since the TRU has clarified the legislative intent behind the amendment of Rule 5 of the Rules, explaining that no nexus need to be established, denial of refund benefit on sole ground of non-establishment of nexus cannot be sustained for judicial scrutiny. Accordingly, I am of the view that the refund benefit denied to the appellant in respect of those ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
