2018 (8) TMI 950

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....ent, is post export activity and therefore not covered under the definition of Input Service provided under Rule 2(1)(ii) of Cenvat Credit Rules, 2004. Accordingly a show cause notice dated 23.4.2015, after invoking the extended period of limitation has been issued to the appellant as to why:- i. The Cenvat Credit amounting to Rs. 3,78,176/- availed irregularly, should not be recovered along with interest from them under Rule 14 of the Cenvat Credit Rules read with Section 11A and 11AA of the Central Excise Act, 1944 invoking extended period of limitation. ii. Penalty should not be imposed upon them under the provisions of Section 11 AC of the Central Excise Act, 1944 read with Rule 15 of the Cenvat Credit Rules 2004 for w....

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....ts of the present case. The ld. AR appearing for the department reiterated the findings recorded in the impugned order and prayed for dismissal of Appeal. 3. Ld. Consultant for the Appellant has referred to Rule 2(l) of Cenvat Credit Rules, 2004 as well as S. 11AC(1)(a) of the Central Excise Act, 1944, which reads as follows:- "Rule 2(l) of Cenvat Credit Rules, 2004 "input service" means any service, used by a provider of output service for providing an output service; or used by a manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products and clearance of final products up to the place of removal, and includes services used in relation to modernization, renovation or repairs of....

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.... the person liable to pay duty or the person who has paid the duty and all proceedings in respect of said duty and interest shall be deemed to be concluded;" 4. The contention of the department that the services received for post export period cannot be termed as input service and therefore the service tax paid on such services, received for post export period, is not eligible input service credit is not sustainable. During the course of argument it has been brought to my notice that the services were received for causing export and since they are for export purposes therefore they are prior to removal from factory and are eligible. Realization of export proceeds is a necessary concomitant of export and therefore the same is also eligibl....