TaxTMI 
TaxTMI 
2018 (6) TMI 340
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....iod w.e.f. April 2015 to March, 2016. While processing the said refund claimed by the claimant, it was noticed that the refund has been claimed against unutilized cenvat credit of input services being used for the provision of output services, which have been exported during the quarters ending June, 2015, September, 2015, December, 2015 and March, 2015 also that the major refund was related to cenvat credit of retainership fee, Chartered Accountant fee and provisional fee. Some deficiencies as receipt of convertible foreign currency in INR has also noticed. While adjudicating upon the same, the Assistant Commissioner vide its order dated 30.03.2017 has decided as follows:- (1) Since the total cenvat credit taken on input and input services during the quarter will only be refunded that the refund claim of Rs. 32,76,649/- was reduced to Rs. 13,06,815/- being the amount of cenvat credit availed during the relevant quarter and rest was rejected. (2) The input services used in providing exported output services were held admissible to the claimant. However, while relying upon sub-rule (e) of Rule 6A of ST Rules that reduced claim was also rejected holding that since the payment rec....
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....15, among three invoices for the purpose and has allowed the refund w.r.t. remaining two invoices. Now to adjudicate the grievance of the revenue it is observed that the services rendered by PHG India to PHG US are the services in the nature of consultancy. The service provider i.e. the appellant is based in India and the recipient PHG, US is based in Singapore. Hence the impugned service are exported and since such services do not find any mention in Section 66 D of Finance Act, 2012 i.e. in the negative list, these services are very much taxable. In addition these services qualify the criteria of being called as input services as defined under Section 2(l) of Cenvat Credit Rules, 2004. As per Rules of the CCR, 2004 which deals with the refund of the Cenvat Credits when read with notifications no. 27/2012-CE (NT) at Sr. No. 3, it is clear that total Cenvat Credit taken on inputs and input services during the quarter will be refunded. However Section 11 B of the Central Excise Act, 1944 which is made applicable to refund claim vide notification no. 27/2012-CE notification dated 18.06.2012 restricts the time limit for such refunds, by laying that any person claiming refund of any du....
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....ive serial numbers and reference numbers. In case the amount of inward remittance or realisation of foreign exchange is upto 15,000/-certificates in form BCI with serial numbers and reference numbers may be issued on the letter-head of the authorised dealer (with their 'Logo' printed on it). Since inward remittances received for opening of or credit of Non-Resident (External) accounts/FCNR accounts can be repatriated freely, authorised dealers should not issue certificates against such remittances." 6. From the above provision it is clear that Foreign Inward Remittance Certificate (FIRC) is issued only in respect of foreign exchange. In the present case, FIRCs were issued and there is a specific certification that the payment has not been received in non- convertible rupees, which establishes that the payment received and mentioned in the FIRCs are other than non-convertible foreign exchange, in other words, the payment is in convertible foreign exchange. I have gone through the Notification No. FEMA 9/2000-RB dated 3rd May, 2000, the relevant para No.4 of the said Notification is reproduced below: "4. Manner of Repatriation :- (1) On realisation of foreign exchange d....
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....ed dealer maintained with the correspondent bank in the member country; and b) Payment in any permitted currency in all other cases (2) All countries other than those mentioned in (1). a) Payment in rupees from the account of a bank situated in any country other than a member country of Asian Clearing Union or Nepal or Bhutan; or b) Payment in any permitted currency (2) In respect of an export from India, payment shall be received in a currency appropriate to the place of final destination as mentioned in the declaration form irrespective of the country of residence of the buyer." 10. From the above regulation and serial No. (2) of the Table, it is very clear that the payment in rupees from the account of a bank situated in any country (other than a member country of Asian Clearing Union or Nepal or Bhutan) is a manner of receipt of foreign exchange. In the present case, it is evident that the Indian rupees were received through the account of Deutsche Bank which is situated in foreign country. Therefore, in terms of Regulation 3 made under Section 47 of the Foreign Exchange Management Act, 1999, in the present case the foreign remitta....