2018 (2) TMI 950 - AT - Service Tax

Tribunal upholds refund claim for unutilized credit on disputed services as 'Input Services'

The Tribunal upheld the refund claim granted to the respondent under Rule 5 of Cenvat Credit Rules, 2004 for unutilized credit due to export operations, ... Refund of unutilized CENVAT credit - input services - Rule 5 of Cenvat Credit Rules, 2004 - Held that: - in respondent’s own case M/s. Apotex Pharmachem India Pvt. Limited Versus Commissioner of Central Excise, Customs and Service Tax, Bangalore [2017 (2) TMI 54 - CESTAT BANGALORE] this Tribunal held that these services are ‘Input Services’ and respondent is entitled for refund claim filed by them - appeal dismissed - decided against Revenue. Issues:Revenue's appeal against refund claim allowed under Rule 5 of Cenvat Credit Rules, 2004 based on export operation of finished goods.Analysis:The Revenue appealed against the refund claim granted to the respondent under Rule 5 of Cenvat Credit Rules, 2004, for unutilized credit in their cenvat account due to export operations. The Revenue contended that the respondent availed credit on various services, arguing they did not qualify as 'Input Services' under Rule 2(l) of the Cenvat Credit Rules, 2004, and lacked nexus with manufacturing activities.The Tribunal, after hearing the arguments, reviewed the records and noted a previous decision in the respondent's favor in a similar case. In the earlier Final Order, the Tribunal had determined that the disputed services indeed qualified as 'Input Services,' entitling the respondent to the refund claim. As the issue had been settled in favor of the respondent previously and for subsequent periods as well, the Tribunal found no fault in the impugned orders and upheld them. Consequently, the appeals filed by the Revenue were dismissed.The judgment was delivered in open court on 26/10/2017.