AI Drafter 
TaxTMI 
TaxTMI 
2017 (9) TMI 92
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....d 23/06/2014 Rs.11,32,572/- 5. ST/89778/2014 Apr 12 to Jun 12 No.PD/618-620/2014 dated 23/06/2014 Rs.18,48,921/- 6. ST/89779/2014 Apr 12 to Dec 12 No.PD/618-620/2014 dated 23/06/2014 Rs.13,43,033/- 2. the grounds of rejection (most of which are common) of the refund claims filed under Rule-5 of Cenvat Credit Rules, 2004 read with notifications are as follows: - - Output services provided do not qualify as export of taxable services as per Export of Service Rules, 2005 - Documentary evidence not provided for export of banking and other financial services as per Rule-3 of Export of Service Rules. - BCP-appellant has received consideration only for out of pocket expenses and has not received consideration for services rendered. - The investment manager located abroad and the appellant are related parties, having mutual interest in each others business operations. - Refund claim is hit by unjust enrichment as the services are not exports. - ST-3 return does not disclose the services exported, but discloses the expenses recovered which are more than the actual expenses. Balance sheet does not disclose th....
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....ax, Mumbai-I Vs M/s Greater Pacific Capital India Private Ltd. reported at 2014-TIOL-1726-CESTAT-Mumbai, it has been held that the CBEC Circular No.141/10/2011-TRU dated 13 May, 2011, is only applicable prospectively and cannot be applied for a past period. Further, in the said ruling, this Tribunal held that investment advisory services shall be considered as exports, if the client is located outside India. Accordingly, refund was held grantable. Further, in the case of M/s Paul Merchants Ltd Vs CCE, Chandigarh, this Tribunal have held that services provided by the agents and subagents to customers located outside India qualified as Business Auxiliary Services and amounted to exports. 4.1. So far the issue of non-receipt of consideration or receipt of part of the Consideration in foreign exchange, the learned counsel explains that the consideration is received in the following 2 modes:- Mode 1) The appellant received the remittance in convertible foreign exchange, which is credited to their account by their banker and the banker issues the remittance certificate or FIRC. Mode 2) The appellant receives consideration or part of the consideration in INR, in such case, The se....
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....not be eligible if the transaction between related parties. 4.5. So far the issue of unjust enrichment is concerned, the provisions of unjust enrichment do not apply when refund is claimed of unutilised Cenvat credit in relation to export of goods/ services. 4.6. The learned Counsel further urges that the appellant have made proper disclosures in detail, of export turnover, as regards fees and expenses incurred during the course of providing investment advisory services, in the returns. Further, the details of collection have also been disclosed in the service tax returns. Further, there was no such allegation of inadequate disclosure or nondisclosure in the show cause notice and the same is bad and beyond the scope of show cause notice. Further, the appellants are 100% exporter of output services. Thus, the entire balance of Cenvat credit represents unutilized input credit, which is refundable. Further, disclosure of refund claim filed, in the balance-sheet, is not the precedent condition for claiming of refund. The appellant have properly accounted for the service tax and education-cess paid on the input services used in or in relation to providing of investment advisory se....
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....ertible foreign exchange, as clarified by the Reserve Bank of India (by the Exchange Control Department) vide Notification No. FEMA 14/2000-RB dated 03^rd May, 2000, under the powers conferred vide the Foreign Exchange Management Act, 1999 and thus have made Rules for remittance, in respect of manner of receipt and payment in foreign exchange, wherein Clause 3 of the Notification provides that the manner for receipt of foreign exchange by payment in Rupees from the Account of a bank situated in any country other than member Countries of Asian Clearing Union or Nepal or Bhutan. Thus, I hold that all conditions for export of service, under Export of Service Rules, 2005 have been fulfilled and impugned order is bad for holding that there is no export of service. 6.3 I also hold that under the terms of agreement, the appellant as a service provider is entitled to receive both fees and reimbursement of expenses incurred, for rendering the service. As such, the two together form gross amount of service charges, as defined under Section 67 of the Finance Act, 1994. 6.4 I also hold that the appellant has filed sufficient documents in support of their claim of refund under the classif....