9911796707
TMI Blog2012 (12) TMI 581X X X X Extracts X X X X X X X X Extracts X X X X ..... tax paid on leased telecom lines - denial of Refund claim - Held that:- Appellants are rightly entitled for Service tax credit and refund thereon for the reason that the exports are undertaken electronically and to undertake this export they need dedicated lines from their office premises to the telecom authorities, who will receive the data for transmitting the same abroad. Without these dedicated lines, the appellant cannot deliver the output service and, therefore, leasing of telecom lines by the telecom authorities is an eligible input service as defined in Rule 2(l) of the CENVAT Credit Rules, 2004. No export of Output Service - Held that:- The view adopted by Revenue that appellant has not exported the output service because the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... They have filed a refund claim amounting to Rs.42,76,215/- and Rs.29,90,199/- pertaining to their two units, namely, Unit no. 1 Unit no. 2 at Nashik. The claims were rejected on the ground that a part of the amount on which CENVAT credit was taken was distributed by their Head Office as inputs service distributor and at the relevant time the Head Office was not registered as an input service distributor and, therefore, they could not have distributed the input service tax credit. The other part of the refund claim was rejected on directly availed services' on the ground that the service provided by the telecom service providers who leased the telecommunication lines to the appellant and charging service tax on the same, is not an eligibl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly and for the said service, they have received payments in convertible foreign exchange. Therefore, they have completed the export transaction. In view of the above, they are rightly entitled for the refund claim. 4. The Ld. AR appearing for the Revenue reiterates the findings of the lower authorities. 5. We have carefully considered the rival submissions. 6. As regards the denial of refund claim of the service tax paid on leased telecom lines, the appellants are rightly entitled for Service tax credit and refund thereon for the reason that the exports are undertaken electronically and to undertake this export they need dedicated lines from their office premises to the telecom authorities, who will receive the data for transmitting t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appellant towards the services received. Therefore, we do not find any reason to sustain the order of the lower authorities in this regard. However, we find that the payment has been received by the Head Office of the appellant unit in Bombay whereas they are situated in Nashik and the appellant needs to produce evidence to show that the payments which were received in convertible foreign exchange in Bombay related to the exports made by the units at Nashik. Subject to verification of these facts through documentary evidence, the appellant would be rightly entitled for the benefit of the refund claim. Accordingly, we remand the matter to the original adjudicating authority to consider the refund claim of the appellant, in terms of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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