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TMI Blog2022 (12) TMI 56X X X X Extracts X X X X X X X X Extracts X X X X ..... y been held by this Tribunal in the matter of ACCELEYA KALE SOLUTIONS LTD. VERSUS COMMISSIONER, CGST, THANE [ 2018 (7) TMI 1217 - CESTAT MUMBAI] that in such cases the nexus between the input service used in export of service should not be insisted upon - also, the amended provisions of Rule 5 of the rules have also been clarified by the Tax Research Unit of Department of Revenue vide Circular dated 16.3.2012. It has been stated therein that the nexus between the input service used in export of service should not be insisted upon and the benefit of refund should be granted on the basis of ratio of export turnover to total turnover demonstrated by the assessee. The authorities below have erred in rejecting the refund claim of the appellant. Accordingly the impugned order is set aside - Appeal allowed - decided in favor of appellant. - Service Tax Appeal No. 87174 of 2019 - FINAL ORDER No: A/86138 / 2022 - Dated:- 1-12-2022 - MR. AJAY SHARMA, MEMBER (JUDICIAL) Shri R. Kumaravel, CMA for the appellant Shri Sunil Kumar Katiyar, AC(AR) for the respondent ORDER Appellant herein has filed the instant appeal challenging the Order-in-Appeal dated 11.3.2019 passed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ollowed while rejecting the refund claim and therefore the authorities below have erred in rejecting the refund claim. In order to buttress the argument, learned Chartered Account relied upon the decisions of this Tribunal in the matters of (i) BNP Paribas India Solution Pvt. Ltd. vs. Commr. CGST, Mumbai East; 2022 (58) G.S.T.L. 539 (Tri.- Mumbai), (ii) Order No. A/85955-85963/2022 dated 17.10.2022, PMI Organisation Centre Pvt. Ltd. vs. Commr. CGST CT and (iii) Order dated 18.12.2019 in Appeal Nos. ST/1834 1833/2011; Orange Business Services India Solutions Pvt. Ltd. vs. Commr. S.T., Delhi-III. While relying upon the decision of this Tribunal in the matter of Accelya Kale Solutions Ltd. vs. Commr. CGST, Thane; 2018-TIOL-2451-CESTAT-Mum, learned Chartered Accountant submits that since the claim pertains to the period post-2012, refund ought to have been allowed by the concerned authorities on the basis of formula prescribed under Rule 5 ibid without insisting on any nexus. Per contra learned Authorised Representative reiterated the findings recorded in the impugned order and prayed for dismissal of the appeal. 5. I have heard learned Chartered Accountant for the appellant and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ast reported in 2020 (2) TMI 224-CESTAT Mumbai, set aside the denial of refund by the department to the Appellant on the ground of non-establishment of nexus between the input and output services, after discussing Rule 5 ibid in detail. The relevant extract of the said order is as under : xxxx xxxx xxxx 6. Rule 5 of the Cenvat Credit Rules was substituted by Notification No. 18/2012-C.E. (N.T.), dated 17-3-2012 (w.e.f. 1-4-2012). Under the said substituted rule, it has been provided that the manufacturer or the service provider has to claim the refund as per the formula prescribed therein. Considering such amendment of Rule 5, the Tax Research Unit of Department of Revenue vide circular dated 16-3-2012 has clarified that the new scheme under Rule 5 does not require the kind of correlation that is needed at present between exports and input services used in such exports. Since the amended rule w.e.f. 1-4-2012 does not provide for establishment of nexus between the input and the output services and the benefit of refund is to be extended only on compliance of the formula prescribed therein, I am of the view that denial of refund benefit on the ground of non-establishment o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... On perusal of the statutory provisions read with the clarifications furnished by the TRU, it transpires that under the substituted Rule 5 of the rules, there is no requirement of showing the nexus between the input service and the output service provided by the assessee. Since the refund under the said amended rule is governed on the basis of receipt of export turnover to the total turnover, establishing the nexus between the input and output service cannot be insisted upon for consideration of the refund application. 8. In view of above, the impugned order, insofar as it has denied the refund benefit on the ground of non-establishment of nexus between the input and output services, is set aside and the appeal is allowed in favour of the appellant. There is no dispute that the aforesaid decision of this Tribunal in appellants own case covered both pre-and post-amendment period and also the services which are in issue herein. So far as the decision in the matter of Maersk Global (supra) is concerned, I am afraid that the Learned Authorised Representative is not correct in his submission that the said decision pertains to pre-amendment period. Similarly, while interpreting ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... purpose, had conveyed that voluminous documentation cannot be insisted upon for verification by the Department. The relevant paragraph in the Budget speech is extracted herein below:- 173. While the problems faced by exporters of goods with respect to taxes on input services was addressed earlier this year, disbursement of taxes that go into the export of services has been an irritant for long. I now announce a new scheme that will simplify refunds without resorting to voluminous documentation or verification. As an added incentive, such refunds will also be admissible for taxes on taxable services that have been exempted. 7. Further, I also find that the amended provisions of Rule 5 of the rules have also been clarified by the Tax Research Unit of Department of Revenue vide Circular dated 16.3.2012. It has been stated therein that the nexus between the input service used in export of service should not be insisted upon and the benefit of refund should be granted on the basis of ratio of export turnover to total turnover demonstrated by the assessee. The relevant paragraph in the Circular dated 16.3.2012 of TRU is extracted herein below:- F. Cenvat Credit Rules, 200 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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