CENVAT refund nexus for input services upheld where prior decision had already accepted linkage to export activity.

Refund of CENVAT credit under Rule 5 could not be denied for Travel Agent Services, Club/Association Membership and Sponsorship Services on the ground of lack of nexus with export of services, because the Tribunal noted that this nexus issue had already been decided in the assessee's favour in its own case. It further accepted that the Revenue could not object at the refund stage to credit already availed, following the earlier decision relied upon. The denial of refund was therefore held unsustainable, and the appeal was allowed with consequential relief.

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Issues: Whether refund of CENVAT credit under Rule 5 of the CENVAT Credit Rules, 2004 could be denied in respect of Travel Agent Services, Club/Association Membership and Sponsorship Services on the ground that such services had no nexus with the export of services.

Analysis: The Tribunal noted that the issue of nexus of these services with the export activity in the assessee's own case had already been decided in favour of the assessee. It also accepted that the Revenue could not object at the stage of grant of credit when the credit had already been availed, in the light of the earlier decision relied upon.

Conclusion: The denial of refund was unsustainable and the appeal was allowed with consequential relief.

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