Input service nexus for export refund prevails; necessity test cannot be added to the Cenvat rules.

Input services qualify for refund where they are used in providing exported output services and have a nexus with those services. The requirement is use in providing output services, not strict necessity for their provision; reading a necessity test into the Cenvat Credit Rules, 2004 would add words to a fiscal statute, which is impermissible. On the facts, the Tribunal's view that the four services were so used was a possible view, so the challenge failed and the refund entitlement was not disturbed.

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Issues: Whether the input services in question were used in providing the exported output services so as to qualify for refund, and whether the definition of input services could be restricted by applying a test of necessity.

Analysis: The Tribunal had examined the four services and their use in the respondent's business and found that they were used in providing output services with a nexus to the exported services. The legislative requirement was held to be use in providing output services, and not that the services must be strictly necessary for providing such services. Importing a necessity test into the Cenvat Credit Rules, 2004 was held to amount to adding words to a fiscal statute, which is impermissible. On the facts, the view taken by the Tribunal was held to be a possible view.

Conclusion: The challenge to the Tribunal's finding failed, and the refund entitlement on the input services was not disturbed.

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