2015 (8) TMI 1276 - AT - Service Tax

Entitlement for refund - Export of services - Cenvat credit in respect of unutilised input credit was accumulated in the record of the assessee - Held that - there is no dispute that export of good and services are not dutiable. Therefore, according to Rule 5 of the Cenvat Credit Rules, 2004, when duty or tax paid on input or input service accumulates and such duty or tax so accumulated is eligible to be allowed as Cenvat credit but not utilised by the exporter, he is entitled to refund thereof. Also the registration is not the criteria to allow refund when the very output or output service is not at all liable to duty/tax, followed by the decision of the Hon ble High Court of Karnataka in the case of mPortal India Wireless Solutions P. Ltd. Vs Commissioner of Service Tax, Bangalore 2011 (9) TMI 450 - KARNATAKA HIGH COURT . - Decided against the revenue

Summary

The Appellate Tribunal CESTAT CHENNAI ruled in favor of the appellant, allowing the refund of accumulated Cenvat credit for unutilized input credit in the case of export of services. The Tribunal upheld the Commissioner (Appeals) decision, stating that the export of goods and services are not dutiable, entitling the exporter to the refund as per Rule 5 of the Cenvat Credit Rules, 2004. The Tribunal also noted that registration is not a criteria for refund when the output service is not liable to duty/tax.