TMI Blog2020 (2) TMI 1001X X X X Extracts X X X X X X X X Extracts X X X X ..... relevant material has been placed on record to treat the same differently for the period in dispute - Therefore the Scientific and Technical Consultancy Services provided by the Appellant to DITC is to be treated as export of service. Rule 5 of Cenvat Credit Rules, 2004 was amended vide Notification No. 18/2012-CE (NT) dated 17/03/2012 and after amendment the said rule provides that the refund of Cenvat credit is allowed to service provider when the output service is exported. After amendment of the said Rule, no nexus is relevant between input or input services with the output service and therefore the present refund claim which relates to the period April, 2016 to June, 2016 is correctly availed by the Appellant for the aforesaid service ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2004 for the provision of output services exported for the period April, 2016 to June, 2016 for an amount of ₹ 5,22,74,046/- on 31/03/2017 in terms of Notification No. 27/2012-CE (NT) dated 18/06/2012 alongwith supporting documents. Personal hearing was granted to the Appellant. After hearing, the Adjudicating Authority vide Order-in-Original dated 24/10/2017 held that Scientific Technical Consultancy Services for the month of June, 2016 cannot be treated as export of service and accordingly recalculated the export turnover and reduced the refund claim by ₹ 13,27,192/- and also rejected the claim of ₹ 4,844/- on the ground that the Appellant has availed ineligible credit. Aggrieved, the Appellant filed Appeal before th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the refund claim was filed under Notification No. 27/2012-CE (NT) dated 18/06/2012 under Rule 5 of the CCR, 2004 which provide that in case refund claim sanctioned is less than the refund claim, then the difference shall be allowed as re-credit and therefore the difference of ₹ 13,27,192/- is accruing to the Appellant under the existing law. He also submitted that Scientific and Technical Consultancy Services performed by the Appellant has been considered as export of service by the department in previous years. According to him, the turnover of Scientific and Technical Services provided by the Appellant shall be considered under Rule 5of CCR of 2004 when the amount due is received in foreign currency. 4. The reading of the prov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h development carried out by the Appellant. The CBEC vide Education Guide has explained the services which shall be covered under Rule 4(a) of Place of Provision of Service Rules, 2012. According to the said Education Guide, the essential characteristics of a service to be covered under this Rule is that the goods temporarily come into the physical possession or control of the service provider and without this happening, the service cannot be rendered. So far as reimbursement of material cost plus a mark-up of 10% on the same is concerned, it is a method of pricing considered in the agreement, since the result from research development activity performed by the Appellant cannot be determined at any particular point of time. In my view, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... terial has been placed on record to treat the same differently for the period in dispute. Therefore the Scientific and Technical Consultancy Services provided by the Appellant to DITC is to be treated as export of service. Rule 5 of Cenvat Credit Rules, 2004 was amended vide Notification No. 18/2012-CE (NT) dated 17/03/2012 and after amendment the said rule provides that the refund of Cenvat credit is allowed to service provider when the output service is exported. After amendment of the said Rule, no nexus is relevant between input or input services with the output service and therefore the present refund claim which relates to the period April, 2016 to June, 2016 is correctly availed by the Appellant for the aforesaid service. So far as t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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