TaxTMI 
TaxTMI 
2017 (7) TMI 643
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....e adjudicating authority has not included the same in the export turnover for the purpose of refund under Rule 5 of Cenvat Credit Rules, 2004 read with Notification No.5/2006-CE(N.T.) dated 14-3-2006. 2. Shri. D. V. Nagvenkar, Ld. Addl. Commissioner(A.R.) appearing on behalf of Revenue reiterates the findings of the grounds of appeal. He submits that even though the services provided by overseas branches of the respondent was not includible in export turnover, the same is includible in the total turnover for the reason that portion of the turnover pertains to the overall activity of the respondent and the same is part of the total turnover of the respondent company. The Commissioner(Appeals) has erred in not including the turnover of the....
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....6 issued under Rule 5 of CCR. The appellant has contended that they had not included the value of the services provided by their branches located abroad in value of their export turnover as well as in their total turnover. However the Ld. Adjudicating Authority has added the turnover of the services provided by the branches of the Appellant located abroad in the total turnover but not included the same in their export turnover and the refund amount has got reduced accordingly. Further, refund was also rejected in respect of export proceeds not realized and certain CENVAT credits disallowed. 9. 1 find that the services provided by the appellant from their branches located abroad have not been included by the appellant in their export turn....
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....s calculation of refund of accumulated CENVAT credit by use of formula given in the Notification No.05/2006-CE (N.T.) is concerned. In the first option, the service provider (exporter) may include the value of services provided by its branches located abroad in the export turnover as well as in the total turnover, provided the payment for such services is received in convertible foreign exchange. Under the second option, the service provider (exporter) may exclude the value of services provided by the overseas branches from the export turnover as well as from the total turnover even though payment for the same may have been received in convertible foreign exchange by the overseas branch. In the second option, the overseas branch is being co....
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....es will have to be excluded from the value of 'total turnover' also, of the appellant. I have also found from the submissions made by the appellant that their overseas branches have raised invoices on their foreign clients and the payment of the same have been received by the overseas, branches only; that the overseas branches have accounted for the same in their financial accounts and that the overseas branches were considered as separate units (profit centers). The Indian entity (appellant) has neither provided the said services nor it has received the payment of the services provided by their overseas branches and therefore the appellant has correctly not accounted the same in their financial accounts. Therefore, I hold that the ....