TaxTMI 
TaxTMI 
TaxTMI 
2016 (8) TMI 130
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.... required under Rule 5 of the Cenvat Credit Rules. The refund claim was rejected by the Deputy Commissioner on 23/07/2009 on the ground that the appellant had failed to establish that the claim was in respect of services used in manufacture of goods which are ultimately exported during the quarter. It was also observed that the appellants have failed to give documentary evidence regarding the availment of credit and the use in the export goods. The appellant agitated the matter before the Commissioner (Appeals), who set aside the order-in-original vide order-in-appeal No.PIII/VM/269-275 dated 22/12/2009 and remanded the matter to the original adjudicating authority for determination of following points: (i) First identify the correct clas....
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....es of the show cause notices and give opportunity of hearing. (viii) To verify from records, as to whether the cost of input services formed part of the assessable value. 2. The matter was adjudicated afresh by the Assistant Commissioner. The Assistant Commissioner complied with the direction of (i) (ii) and came to the conclusion that input credit in respect of services except club and association services would be admissible under the Cenvat Credit Rules. So far as the issue No.(iii) is concerned, the Assistant Commissioner did not given any specific findings instead he claimed that since the assessee is entitled to avail credit and he had taken credit for the past period, during the given period i.e. during the quarter and/or months t....
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....ly sanctioned refund with the applicable rate of interest. This was ordered on the ground that the credit was availed in respect of the services used in 2004, 2005 & 2006 and it had no nexus between the export made during the year 2007. Aggrieved by the said order, the appellants are in appeal before this Tribunal. 4. The learned Counsel for the appellants argued that Notification No.5/2006-CE(NT) provides for refund of duty paid on inputs or input services used in or in relation to the manufacture of final products. She argued that there is no one to one co-relation required from the inputs as final products exported as has been held in the case of CCE Vs. Motherson Sumi Electric 2010 (258) ELT 543 (T) and in the case of Capiq Engineering....
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..... I find that the Assistant Commissioner has not answered the question at all. Instead he has held that there is no need for any one to one co-relation between the input service and the export goods. It seems that the Assistant Commissioner has not appreciated the issue in proper perspective. While there are plethora of judgements which way one to one co-relation is not necessary while availing credit. However, the issue of nexus between the inputs and services used for export goods is a different issue altogether. The issue of one to one co-relation pertains to co-relation between the inputs used during a particular period with the products manufactured during that period. In other words, if 100 Kgs pipes are used to manufacture five str....
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....nputs/input services and the exports. The exporters are also advised to provide a duly certified list of invoices. The departmental officers are only required to make a basic scrutiny of the documents and, if found in order, sanction the refund within one month. The reports from the field show that this has improved the process of grant of refund considerably. It has, therefore, been decided that similar scheme should be followed for refund of Cenvat credit under Notification No. 5/2006-C.E. (N.T.). The procedure prescribed herein should be followed in all cases including the pending claims with immediate effect. Para 3.2.1 with reference to one to one co-relation between inputs/input services and the export goods. This does not answer the....
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....that they are exporting 100% of their services, and, only if it is noticed subsequently that the exporter had provided services domestically, the proportional refund to such extent can be demanded from him. The said para lays down that if during a particular period a certain amount of credit is taken on the basis of services/input received during that period and there are no export during that period then the same credit can be considered for the subsequent quarter. In the instant case no such claim had been made out by the appellants that during the period 2004, 2005 & 2006 there were no exports. Therefore, the said para does not apply to the appellant. 7.1 A perusal of the list of services shown that they have availed credit in respect ....