TaxTMI 
TaxTMI 
2026 (7) TMI 372
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.... the said appeals assailing the same. Briefly stated, the assessee renders Business Auxiliary Service and Consulting Engineer Service and is an exporter of service. The appellant was granted refund of unutilized input tax credit on export of services for, four quarters during the period October 2009 to September 2010. The said refund amount aggregated to Rs.11,48,550/-. Subsequently, a demand show cause notice came to be issued to them. Challenging refund amount, as indicated in table below Details of Appeal before the Commissioner (Appeals) Period of Dispute OIO Ref# A. No. Ref# Refund Sanctioned vide OIO Refund contested October 2009 - December 2009 4/2011 dt 05.01.2011 22/2011 dt 12.04.2011 243,742 ....
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....ce credit allowed under rule 3 of the said rules against goods exported during the quarter or month to which the claim relates (hereinafter referred to as "the given period") It is this clause that is the subject matter of the dispute in the impugned appeals. 3. The case of the department is, that as per Notification No. 5 of 2006-CE(NT), dated 14th March 2006, refund is allowed only in those circumstances, where a manufacturer or a provider of output service is not in a position to utilize the input service credit allowed against goods exported by the assessee during the quarter or the month to which the claim relates. It is therefore, their submission that the credit availed in a quarter beyond the date of the last export invoice co....
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....ssessee of such rightful benefits admissible to them in law would jeopardize the very operation of the schemes of tax credit availment and utilization. I am of the view that a mere timing difference in availing admissible cenvat credit within the same quarter would not become a reason for denial of the refund as long as the admissibility of such cenvat credit is not disputed. This is more so as refund in terms of the said Notification 5/2006- CE(NT) is considered on a quarterly basis and not on the basis of each singular export event. What is material and what is germane to the scheme, is the ascertainment of the total unutilized ITC available at the end of the quarter. The time of availing of the said credit within the quarter would theref....
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....sly has to be a time lag between the date of availment of such credit of service tax paid on input services and the claim for refund thereof. This is so as the services are required to be consumed and the finished goods/ services have to be exported. It is an undisputed fact that the services for which the impugned question of credit were utilized for provisioning of exported output service. It is only thereafter that the refund claim is required to be filed. Unless these conditions are sequentially met, the admissibility of the refund claim would not materialize, more so when the rightful availment of the accumulated cenvat credit has not been disputed by the authorities. 8. The learned consultant for the appellant has sought to seek su....