TaxTMI 
TaxTMI 
2022 (10) TMI 736
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....5,71,865/- by the original authority was upheld to the extent of Rs. 35,34,735/- leading to this dispute before the Tribunal. 2. The challenge has been mounted on two grounds, viz., that the denial of credit on alleged lack of nexus of 'taxable service' procured by them and the 'output service' travels beyond the limited disposal envisaged in rule 5 of CENVAT Credit Rules, 2004 and that, by ascertaining eligibility for refund against the touchstone of rule 2(l) of CENVAT Credit Rules, 2004 as amended with effect from 1st March 2011, the first appellate authority has travelled beyond the scope of the show cause notice. 3. M/s PMI Organisation Centre Private Limited, a subsidiary of M/s Project Management Institute, USA, which is an associa....
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.... non-compliant with the definition in rule 2(l) of CENVAT Credit Rules, 2004 as it stood after the deletion of 'activities related to business' from 1st April 2011 besides observing that, in certain instances, the appellant had failed to produce evidence of the said services having been consumed towards 'output service' having been rendered. 4. According to Learned Chartered Accountant appearing for the appellant, the Tribunal has consistently taken a stand that proceedings in which claims for refund are disposed off are no surrogate for denial of credit which must necessarily pass through the process prescribed in rule 14 CENVAT Credit Rules, 2004. It was specifically pointed out by him that, in a dispute relating to another period, the T....
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....fied that while adjudicating the refund application, the department should examine the nexus theory as provided under Rule 3 read with Rule 14 ibid. In other words, since Rule 5 ibid itself is a self contained provision, designed with the sole objective of consideration of the refund application for the limited purpose of exportation of goods/services, the department is only confined to look into the aspect, whether the formula prescribed there under has been duly complied with by the claimant or not. 6. On careful examination of the above statutory provisions, it transpires that the reasons assigned by the authorities below in this case for denial of the refund benefit to the applicant shall not stand for judicial scrutiny inasmuch as o....
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....owever, without carrying out the process of adjudication, he straightaway rejected the refund claim, which is not legal and proper. Further, on going through the nature of the service, I find that all these services in question are directly used by the service provider i.e. the appellant. In various judgments cited by the Learned Counsel, this Tribunal and various High Courts consistently held that all these services are input service for providing the output service. Hence the Cenvat credit is admissible." in PMI Organisation Centre Pvt Ltd v. Commissioner of Central Goods and Service Tax, Mumbai East [final order no. A/85105/2022 dated 7th February 2022 disposing off appeal no. ST/85958/2019 against order-in-appeal no. PK/1008/ME/2018 da....
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.... the statutory provisions read with the clarifications furnished by the TRU, it transpires that under the substituted Rule 5 of the rules, there is no requirement of showing the nexus between the input service and the output service provided by the assessee. Since the refund under the said amended rule is governed on the basis of receipt of export turnover to the total turnover, the establishing the nexus between the input and output service cannot be insisted upon for consideration of the refund application.' 5. Learned Authorised Representative contends that the notification effecting changes in rule 2(l) CENVAT Credit Rules, 2004 deprives the impugned services from being considered as eligible for availment for credit. It is also his co....
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....credit. 8. Rule 5 of CENVAT Credit Rules, 2004 is a mechanism specifically designed and comprehensively formulated for reimbursement of tax/duties paid on procurement of inputs/input service to the extent of these are attributable to service that are exported by the appellant. The consequences of denial of refund is not erasure from the CENVAT credit account but restoration therein for utilization in discharge of taxes/duties of services/goods cleared domestically. 9. The procedure for claiming such refund, enshrined in notification no. 27/2012-Central Excise Act, 1944 (NT) dated 18th June 2012, must necessarily be in conformity with the boundaries within which the claim of refund is initiated as per rule 5 of CENVAT Credit Rules, 2004. N....