The appellant availed CENVAT credit prior to registration. The...

The appellant availed CENVAT credit prior to registration. The department demanded interest on such credit, which was held impermissible as no demand for recovery of ineligible credit was raised. The appellant provided Clinical Research Management and Resourcing (CMR) services and Data Management services. The department alleged CMR services did not qualify as export, but confirmed demand for entire turnover including Data Management services, which was incorrect. Data Management services were accepted as exports by granting refunds, establishing they fulfilled export conditions. CMR services also qualified as export under Export of Service Rules as the services involved testing, analysis, and delivery of reports outside India. The extended period of limitation was invoked alleging suppression of facts, which was held unjustified as the appellant filed returns and obtained refunds for Data Management services. Penalties imposed under Finance Act and CENVAT Credit Rules were set aside. The Tribunal allowed the appeal, setting aside the impugned order as unsustainable.