2008 (10) TMI 84

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..... service & exported good is not required – credit on mobile phone is also admissible
Shri B.S.V. Murthy Member (Technical) (Final Order Nos. A/2299-2300/WZB/Ahd/2008-CII dt. 16.10.2008 certified on 20.10.2008 in Appeal Nos. E/1031-1032/2007) Shri Willingdon Christian, Adv. for Appellant. Shri Sameer Chitkara, SDR for Respondent Per B.S.V. Murthy: This appeal has been filed against the rejection of refund claim of Rs.74,469/- by the lower authorities on the ground that following services on which credit of service tax has been availed during the quarter April 2006 to June 2006 could not be wholly consumed for export done during the quarter in question and these services were of general nature which could be utilized for a long period .....

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..... e 57AC(7), Rule 57AC and Rule 5 have words "used in the final product", the correspond notification for allowing refund, have used words "in or in relation to" during the period from 1987-88 to 2005-06 and it was only after issue Notification No.5/2006-CE(NT) that the rule and notification have the same terminology "used in the manufacture". He also cited several decisions in support of his contention that the interpretation of statute adopted by lower authorities is not correct. In Prestige Engineering (India) Ltd. Vs. CCE Meerut 1994 (4) RLT 333 (SC)=1994 (54) ECR 519 (SC), it was observed that expression defined in the Act is to be understood in the same sense wherever it occurs in the Act, Rules or Notification issued thereunder and the .....

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..... EOU. The services in respect of which credit has been taken, cannot be linked to the goods exported in a particular quarter. Needless to say that the some of the services may be enough for the life of the plant. It is so especially when it comes to repairs. How long repaired machines work and to what extent service tax can be related to the goods manufactured would create problems, the creation of which was never the intention. Just because the appellants are claiming refund, Revenue has taken a stand that it is necessary to co-relate use of the input services with the final product. Admittedly, it is quite clear that if the appellants were to have clearances to domestic tariff area, they could have used the credit for payment of duty on th .....

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