2020 (1) TMI 101

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....ppeared for the appellant. Heard learned A.R. and perused the records. The appellant herein is engaged in providing customised software development services (IT software services) and information technology enabled services (ITES) to their own group companies outside India. They have no domestic sale of these services. The information technology software services (ITSS) became taxable only with effect from 16th May 2008 whereas the ITES of the nature rendered by the appellant were taxable with effect from 1st July 2003 under the head 'Business Auxiliary Services'. The appellant availed CENVAT credit attributable to the taxable services rendered by them and had not availed CENVAT credit attributable to the exempted services. With respect to ....

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.... explanation to this formula states that the export turn-over shall mean the sum total of the value of final products and output services exported during the given period in respect of which exporter claims the facility of refund under this rule. It also clarifies that total turn-over means the sum total of the value of all output services and exempted services provided including the value of services exported and all excisable and non-excisable goods cleared including the value of goods exported and the value of bought out goods sold during the given period. 3. The appellant submits that this formula has been incorrectly applied by the lower authorities by taking the total turn-over which includes both taxable and exempted services whil....

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....NVAT credit is available only when the output services are taxable services and they are not exempted services. He would also argue that if input service is not eligible as a cenvatable item at all, allowing refund of such wrongly availed CENVAT credit is not permissible within the scheme of CENVAT Credit Rules 2004. In view of the above, he would assert that all appeals may be rejected. 6. We have considered the arguments of the learned A.R. and perused the records. It is a well settled principle that availment of CENVAT credit, its utilisation and its refund are different aspects dealt with under CCR 2004. Rule 5 of CENVAT Credit Rules 2004 provides for refund of CENVAT Credit in respect of goods/services exported out of India. Nowhere....

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.... Total turnover during the quarter = Rs. 500 Refund of input service credit under Rule 5 of the CENVAT Credit Rules, during the quarter GBP=100x250/500 i.e. Rs. 50. Explanation : For the purposes of condition no. 5, - 1. "Export turnover" shall mean the sum total of the value of final products and output services exported during the given period in respect of which the exporter claims the facility of refund under this rule. 2. "Total turnover" means the sum total of the value of, - (a) all output services and exempted services provided, including value of services exported; (b) all excisable and non excisable goods cleared, including the value of goods exported; (c) The valu....