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TMI Blog2015 (6) TMI 661X X X X Extracts X X X X X X X X Extracts X X X X ..... 1.2010 specifically provides that the essential services, used by Call Centres for provision of their output services would qualify as input services and be eligible for taking credit as well as refunds. Further, it was clarified in the said Circular that the phrase ‘used in' in the CENVAT Credit Rules and Notification should be interpreted in a harmonious manner. The inputs services, without which the quality and efficiency of output cannot be achieved, should be allowed as eligible input services for refund. Based on the above all the input services as referred in Para 11, which were disallowed by the adjudicating authority, are used by the applicant in providing the ‘export' outputs services and are very essential to provide quality outp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... paid on Rent-a-Cab services', telephone services' and rent' paid by the respondent. He would submit that these three input services have not nexus with the services exported by the respondent and the first appellate authority has erred in setting aside the order-in-original. He would also submit that as per the provisions of Rule 2(l) of Cenvat Credit Rules, 2004, to avail CENVAT Credit, there have to be some nexus with the output service which were exported by the respondent. 6. Learned C.A. appearing on behalf of the respondent reiterates the findings of the first appellate authority wherein it is held that the respondents are rightly entitled for the refund of service tax paid on input service which has been used in ren ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the total turnover in the quarter) from the Cenvat credit of ₹ 1 crore availed in April-June quarter. The illustration prescribed under para 5of the Appendix to the notification should be viewed in this light. However, in case of service providers exporting 100% of their services, such disputes should not arise and refund of CENVAT credit, irrespective of when he has taken the credit, should be granted if otherwise in order. Such exporters may be asked to file a declaration to the effect that they are exporting 100% of their services, and, only if it is noticed subsequently that the exporter had provided services domestically, the proportional refund to such extent can be demanded from him. 13. The CBEC's Circular No. 12 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tax. Whereas, as per the definition of the term input service' under Rule 2(l) of the Cenvat Credit Rules, 2004, as input service' means any service used for (emphasis supplied) providing any output service. In other words, the construction fo wordings with reference to input service', in the Notification No. 5/2006-CE(NT) dt. 14.3.2006 issued under Rule 5 of Cenvat Credit Rules, 2004 was limited to input services used in providing output service. The above difference in the wordings used in the Notification NO.5/2006-CE(NT) read with Rule 5 ibid, vis-a-vis the definition of input services' under Rule 2(l) gave rise to the controversial interpretation of the provisions of Notification No. 5/2006-CE(NT) read with Rule ..... X X X X Extracts X X X X X X X X Extracts X X X X
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