Input service refund under export notification upheld where services were linked to business, factory, and export operations.

Refund of service tax on disputed input services was treated as admissible under Notification No. 5/06-C.E. (N.T.) because the services fell within the inclusive definition of input service, covering use by a manufacturer in relation to business activities and connected factory or export operations. The reliance on a decision dealing with inputs was held inapplicable, since the relevant question was eligibility of input services. Earlier rulings recognising credit on similar services, together with the Tribunal's own view in comparable matters, supported refund entitlement. The Revenue's objection was rejected on that basis.

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Issues: Whether refund of service tax paid on the disputed input services was admissible under Notification No. 5/06-C.E. (N.T.) dated 14.3.2006.

Analysis: The disputed services were examined against the inclusive part of the definition of input service, which covers services used by a manufacturer in relation to business activities and connected factory or export operations. The reliance placed on the decision concerning inputs was held inapplicable, as the governing issue was eligibility of input services. The earlier decisions recognising credit on similar services and the Tribunal's own view in comparable matters supported the admissibility of refund.

Conclusion: The refund was held admissible and the Revenue's challenge was rejected.

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