TaxTMI 
TaxTMI 
2015 (9) TMI 689
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....epair Service . They had claimed refund of the unutilized Cenvat Credit of Rs. 36,61,517/- for the period from July 2011 to September 2011 under Rule 5 of the Cenvat Credit Rules, 2004 read with notification No. 5/2006- CE(NT) dated 14/3/2006 on the ground that the output services provided during relevant period under the category of Business Support Services had been exported and they were not in position to utilized the Cenvat Credit of service tax paid on the input services used for providing such output services. The respondent was issued show cause notice dated 24/8/2012, rejected refund claim on the ground that the respondent could not satisfy that the services on which refund has been claimed have actually gone into consumption of output services exported during the claim period in the light of judgment of Hon'ble CESTAT Bangalore in the case of M/s. KBASE Tech Pvt. Ltd. Vs. CCE & ST[2010(18) STR 28 (Tri- Bang)]. Being aggrieved, the respondent filed appeal before the Commissioner (Appeals) who after examining in detail held that all the services are covered within the definition of input services under Rule 2(l)(i) and same were used for providing out put services which has....
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....refund shall be granted to the appellant as per law. 6. As regards the appeals of the Revenue, the only ground urged is on the use of the expression "in" which has been retrospectively amended by substitution of expression "for". The expression "for" implies 'for the purposes of' as held by the hon'ble apex Court in the case of Indian Chamber of Commerce [AIR 1976 SC 348] of output service, refund of input service credit would be available. In any case, the department has not objected to the assessee-respondent taking the credit at the relevant time and the objection has been raised only at the time of filing of the refund claims. This Tribunal, in the case of Commissioner of Service Tax, Delhi vs. Convergys India Pvt. Ltd. 2009 (16) STR 198 (Tri-Del.) = 2009-TIOL-888-CESTAT-DELhad taken the view that there cannot be two yardsticks, one for allowing the input credit and another for refund of the credit taken. The Tribunal observed in the said case that there cannot be two different yardsticks; one for permitting the credit and the other eligibility for granting credit. Whatever credit has been permitted to be taken, the same are permitted to be utilized and it is not ....
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.... storage up to the place of removal; In relation to procurement of inputs; In relation to activities relating to business, such as accounting, auditing, financing, recruitment and quality control, coaching and training, computer networking, credit rating, share registry, and security, In relation to inward transportation of inputs or capital goods and outward transportation up to the place of removal. 17. It is worthwhile to note that, out of the input serives as mentioned in the foregoing para, there seems to be no dispute regarding admissibility of CENVAT Credit of service tax paid on the said services as also recorded by the respondent in the impugned orders except for the fact that it was not considered as input service , as there was allegedly no direction nexus with output service provided by the Appellants. 18. It is admitted fact that the Appellants are engaged in providing taxable output services of the category Business Support Services . Therefore, any service which is used for providing the said output service should qualify to become input service and CENVAT credit of the service tax, if any paid on such input service would be admissible. The facility of CENV....
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....estricted to the extent of the ratio of export turnover to the total turnover for the given period to which the claim relates i.e. Maximum refund=Total CENVAT credit taken on input services during the given period X export turnover=Total turnover. 21. Further, it is to be noted that the Board vide their Circular NO. 120/01/2010 dated 19/1/2010 have clarified that the primary objection indicated by the field formations is that the language of Notification No. 5/2006-CX(NT) permits refund only for such services that are used in providing output services. In other words, the view being taken is that to be eligible for refund, input services should be directly used in the output service exported. As regard the extent of nexus between the inputs/input services and the export goods/services, it must be born in the mind that the purpose is to refund the credit that has already been taken. There cannot be different yardsticks for establishing the nexus for taking of credit and for refund of credit. even if different phrases are used under different rules of CENVAT Credit Rules, they have to be construed in a harmonious manner. To elaborate, the definition of input services for manufactur....
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....ted services were used by the Appellants in or in relation to provision of output services. In other words these services could be said to have been used in furthering business prospects of the Appellants, though they may not be having direct nexus with the provision of output services exported. Reliance in this regard is also placed upon Hon'ble CESTAT s decision in following cases:- (i) CCE, Tirunelveli V/s. DCW Ltd. 2011-TIOL-606-CESTAT Mad. Wherein it is held that the assessee is eligible to credit of service tax paid on air travel fare, if the air travel has been performed for the company business . (ii) CCE(LTU), Chennai Vs. Turbo Energy Ltd. -2010-TIOL-1310 CESTAT Mad wherein it is held that the credit of tax paid on air/rail ticket bookings has been held to be admissible, and also credit availed on insurance services was held admissible. (iii) Heartland Bangalore Transcription Ser. (P) Ltd. Vs. CST, Bangalore-2011(21) STR 430(Tri. Ban)- wherein it is held that The assessee is eligible to credit of service tax paid on Maintenance and Repairs services as maintenance is necessary for provision of service of the assessee and thus assessee is entitled to credit of servic....