2018 (2) TMI 617 - AT - Central Excise

Cash refund - various input services - export of services - Held that - except the three services namely, cab operators service, insurance auxiliary service and servicing motor vehicles, the service tax paid on all other services used for the export goods are eligible to refund as held in various cases - appeal allowed in part.

Summary

Issues:
Determining entitlement to cash refund of accumulated credit of service tax paid on various input services used in the manufacture of exported goods under Rule 5 of the CCR, 2004.

Analysis:
The limited issue in this case was whether the Appellants were entitled to a cash refund of accumulated credit of service tax paid on input services used in the manufacture of goods exported but not utilized for domestic clearance under Rule 5 of the CCR, 2004. The Commissioner (Appeals) had allowed cash refund on certain input services but rejected it on others, stating that they did not fall within the definition of input service as per Rule 2(l) of the Cenvat Credit Rules, 2004.

The Appellants argued that the services in question satisfied the definition of input service as per Rule 2(l) of the CCR, 2004, citing several judgments to support their claim. The Appellants provided references to various cases where similar services were considered as input services, thereby justifying their claim for a cash refund.

The Revenue, on the other hand, contended that certain services such as cab operators, insurance auxiliary service, and servicing motor vehicles after a specific date had been excluded from the definition of input service. However, based on the judgments cited by the Appellants, except for the three services mentioned, the service tax paid on all other services used for exporting goods was deemed eligible for a refund.

Consequently, the Tribunal modified the impugned order and partly allowed the appeal, stating that except for cab operators service, insurance auxiliary service, and servicing motor vehicles, the service tax paid on all other services used for exporting goods was eligible for a refund. The judgment considered the specific exclusion of certain services from the definition of input service and allowed the cash refund accordingly.