TaxTMI 
TaxTMI 
2010 (11) TMI 123
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....relevant facts that arise for consideration are the assessee appellant herein is a 100 per cent EOU engaged in the manufacture and export of ready made garments. The assessee appellant filed ten refund claims for the refund of unutilized Cenvat credit in respect of Service Tax paid on input services used in the manufacture of finished goods exported by them. The input services on which the credit was availed are (1) bank charges; (2) rent charges; (3) courier and clearing charges (Inward); (4) professional and service charges; (5) vehicle maintenance; (6) computer maintenance; (7) clearing charges; (8) insurance. The adjudicating authority had rejected all the refund claims filed by the assessee on the ground that the input services, as ind....
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....ation to the manufacturing activity of ready made garments and hence, credit should not be denied. He would submit that the entire findings of the learned Commissioner (Appeals) revolves around the Notification No. 5/2006-CE(NT) issued under rule 5 of Cenvat Credit Rules, 2004. It is his submission that prior to the enactment of Finance Act, 2010, the Notification did not have the words "used in or in relation to" for the manufacturing of final products, which are cleared for export on bond. It is his submission that by section 74 of the Finance Act, 2010, a retrospective amendment was brought to this Notification and the words "in or in relation to" were brought into the Notification, which would indicate that any input or input services, ....
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....and order of the Tribunal in the case of Kbace Tech (P.) Ltd. v. CCE/ST [2010] 26 STT 91 (Bang. -CESTAT) for the proposition that the assessee has to bring on record the integral connection with ultimate production, depending its functional utility test for claiming the refund of the Service Tax paid on the input services. 6. We have carefully considered the submissions made at length by both sides and perused the records. 6.1 Both sides are in appeal before us. Revenue is in appeal for the reason that the assessee is not eligible to avail the refund of the Service Tax paid on the various input services as under : (i) Bank Charges (ii) Telephone Services (iii) Testing Charges (iv) Computer Mai....
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....e assessee. 6.4 We find that the learned Commissioner (Appeals) has, in the impugned order, recorded a finding that the assessee has six bonded premises from where they do the in-bond manufacturing of the activities for the purpose of manufacturing of garments for export. It is also on record that these bonded premises are on rent. If it is so, any premises, which are used for the manufacturing of export goods, needs to be considered as used 'in or in relation to' the manufacturing of the final products. It is also seen from the records that there is no dispute, that for operational convenience, the appellants have procured/purchased commercial vehicles for shifting the semi-finished goods from one premises to another for the next l....
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....d for] providing output service which has been exported without payment of service tax, subject to safeguards, conditions and limitations, set out in the Appendix to this notification." 6.7 It can be seen from the above reproduced relevant clauses of Notification, we are concerned with clause (a). Clause '(a)' talks about the refund of Cenvat credit, which was allowed on input or input services, which were used 'in or in relation to' manufacture of final products. If the Notification with retrospective amendment stands as reproduced hereinabove, then, any input service, which is used in relation to the manufacture of final products, the appellant is eligible to avail the Cenvat credit and if such Cenvat credit cannot be utilized by h....