TaxTMI 
TaxTMI 
2017 (3) TMI 655
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.... credit is admissible in respect of service tax paid on input services for providing output services i.e., 'call centre' and 'medical transcription centre' services which were exported without payment of service tax during 2005-06 and whether these services were exempted and the refund of service tax paid on input service is liable to be granted to the appellant or otherwise. 4. The undisputed facts are, appellant had taken credit of service tax paid on input service received and consumed in providing output service of call centre which was undisputedly exempted. The said credit was taken in April 2006 after the call centre services are made taxable w.e.f. 01/03/2006 and the said amount of credit was utilised for payment ....
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....lients, in respect of which, no service tax was payable and this claim of the appellant is not disputed by the department. The Cenvat credit of Rs. 4,95,56,617/- taken by the appellant in respect of input services used in or in relation to the providing of Call Centre Service or BPO service, which were exported out of India, has been utilized by them for payment of service tax on the taxable services provided to their Indian clients during 2006-07 and 2007-08. The appellant s contention is that since the BPO service and Call Centre Service, both of which were taxable as Business Auxiliary Service had been exported out of India, the appellant, in terms of Rule 5 of the Cenvat Credit Rules, 2004 would be entitled for Cenvat credit of the serv....
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....ted without payment of service tax and whether this credit could be utilized by them in terms of Rule 5 of the Cenvat Credit Rules, 2004 for payment of service tax on taxable service provided to their domestic clients or their inability to utilize this Cenvat credit for payment of service tax on domestic service transactions, whether its cash refund would be available in terms of this, stands answered in favour of the appellant by the judgement of the Tribunal in the case of Zenta Pvt. Ltd. reported in 2012-TIOL-624-CESTAT-MUM = 2012 (27) S.T.R. 519 (Tri.-Mumbai) = 2012 (284) E.L.T. 45 (Tri.-Mumbai), wherein the Tribunal has held that if the assessee is providing a taxable service, although exempt by way of notification, but which had been ....
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....s had been used, were fully and unconditionally exempt from duty under some exemption notification. The ratio of these two judgments of Hon'ble High Courts is squarely applicable to the question of availability of Cenvat credit in respect of input services used in or in relation to providing of Call Centre Service (Business Auxiliary Service) to offshore clients and which had been treated as export of service." 6. I also note that the stand of the department in the case in hand is incorrect as even if the output service which are exempted services and are exported service tax paid on input service is eligible for the refund is the law which has been decided by the Hon'ble High Court of Karnataka in the case of mPortal India Wireless Solu....
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....he Commissioner of Central Excise, who upheld the said order. The assessee preferred an appeal to the Tribunal. The Tribunal held that the assessee was entitled to take credit of service tax paid on input service even though the export of software is not a taxable service. It also held that the limitation under Section 11B does not apply for refund of accumulated Cenvat credit. However, it declined to grant any relief on the ground that the Cenvat scheme is available only to an assessee registered with the department. Unless the assessee is registered with the department he cannot earn credit of service tax paid on input service in the accounts. A person not registered with the department cannot claim refund under Rule 5 of the Cenvat Credi....
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....on is mandatory and that if such a registration is not made the assessee is not entitled to the benefit of refund, the three authorities committed a serious error in rejecting the claim for refund on the ground which is not existence in law. Therefore, said finding recorded by the Tribunal as well as by the lower authorities cannot be sustained. Accordingly, it is set aside. 8. That does not mean that the assessee is entitled to refund as claimed by him consequent to setting aside these orders. As is clear from the order of the original authority in the show cause notice, they have categorically called upon the assessee to furnish the particulars of the taxes paid on input services. They called upon the assessee to produce the invo....