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2024 (6) TMI 47 - AT - Service TaxExport of Inventory Management Services - Refund eligibility of cenvat credit for input services in relation to exported services - 100% EOU - HELD THAT - On going through the CBEC Circular 120/01/2010-ST dated 19.01.2010 and the case-laws cited by the respondents, we find that the issue is no longer res integra. It has been held by the Principal Bench in the case of Convergys India Pvt. Ltd. 2009 (5) TMI 50 - CESTAT, NEW DELHI that when no dispute was raised by the Department about the eligibility to credit to the respondents which they have taken, refund/rebate cannot be denied. We also find that as per the case-law cited above, the services like Security Services, Commercial Coaching and Training Services, Rent-a-Cab Service and House Keeping Services have been held to have been availed in the course of furtherance of the business of the respondents and therefore, have a nexus with the exported services. Thus, we find that the impugned order does not require any interference and therefore, the appeal does not survive. In the result, the appeal filed by the Revenue is dismissed.
Issues Involved: Refund eligibility of cenvat credit for input services in relation to exported services.
Summary: The case involved a 100% Export Oriented Unit (EOU) engaged in export of Inventory Management Services, seeking refund of cenvat credit under Rule 5 of Cenvat Credit Rules, 2004. The original authority partially granted the refund, leading to an appeal by the respondents. The Commissioner (Appeals) allowed the refund for input services like Security Services, Commercial Coaching and Training Services, Rent-a-Cab Service, and House Keeping Services. The Revenue appealed against this decision, arguing that these services lacked nexus with the output service provided by the respondents. The Authorized Representative for the Revenue reiterated the lack of nexus between the impugned services and the output service, seeking to set aside the order on that basis. On the other hand, the Chartered Accountant for the respondents cited precedents and Circular 120/01/2010-ST to support the liberal construction of the nexus condition for exporters' refund eligibility. Various Tribunal decisions were also relied upon to establish the nexus between the services and the business of the respondents. After considering the arguments and case laws presented, the Tribunal found that the issue had been settled in previous judgments. It was noted that the services in question were deemed to have a nexus with the exported services, based on precedents and Circular guidelines. Consequently, the impugned order was upheld, and the appeal by the Revenue was dismissed. The Tribunal's decision was pronounced in Open Court on 30.05.2024, with the appeal being dismissed as the impugned order did not require any interference based on the established nexus between the services and the business activities of the respondents.
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