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TMI Blog2023 (6) TMI 900X X X X Extracts X X X X X X X X Extracts X X X X ..... that in absence of any notice for recovery as provided by Rule 14 ibid the refund claimed by the assessee under Rule 5 cannot be denied. Nothing contrary has been produced on record. The authorities below have erred in rejecting the refund claim of the appellant. Accordingly the impugned orders are set aside - Appeal allowed. - Service Tax Appeal No. 85761 of 2020, 85763 of 2020, 85767 of 2020 - A/85969-85971/2023 - Dated:- 19-6-2023 - MR. AJAY SHARMA, MEMBER (JUDICIAL) Shri Mehul Jivani, Chartered Accountant for the appellant Shri SBP Sinha, Superintendent (AR) for the respondent ORDER These appeals have been filed from the impugned Order-in- Appeal dated 24.1.2020 passed by Commissioner (Appeals II) GST Ce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ely preceding the period herein, granted relief to the appellant by allowing their appeals vide Final Orders Nos.A/85105/2022 dtd. 7.2.2022 and A/85955-85963/2022 dtd.17.10.2022 respectively. 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 learned Authorised Representative for the revenue and perused the case records including the written submissions and case laws placed on record. The issue raised by learned Chartered Accountant during the course of arguments is no more res integra in view of the decisions cited by learned Chartered Accountant in appellant s own case. Apart from t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e which falls for consideration in these Appeals is whether the department can deny refund of Cenvat credit under Rule 5 ibid alleging that there was no nexus between the output and input services. It is well settled legal position that denial of Cenvat credit can be done only by issuing notice under Rule 14 ibid. Having allowed the Cenvat credit or by not denying the same, the department cannot reject refund of Cenvat credit under Rule 5. It is well settled principle that availment of Cenvat credit, its utilisation and refund are different aspects dealt with under CCR, 2004. Rule 5 provides for any refund of Cenvat credit and nowhere in this Rule there is a provision to determine the correctness about the availment of Cenvat credit. Its on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le w.e.f. 01.04.2012 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 of nexus cannot be sustained, I find that this Tribunal in the case of Maersk Global Services Centres (I) Pvt. Ltd. (supra) has extended the refund benefit on the ground that establishment of nexus between the input and the output services cannot be insisted upon. The relevant paragraphs in the said decision is extracted herein below: 7. In this case, the department has not disputed the fact regarding export of output service by the appellant. The disp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... scheme for refunds is being introduced by substituting the entire Rule 5 of Cenvat Credit rules, 2004. The new scheme does not require the kind of correlation that is needed at present between exports and input services used in such exports. Duties or taxes paid on any goods or services that qualify as inputs or input services will be entitled to be refunded in the ratio of the export turnover to total turnover. 2. XX XX XX 4. 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 assesee. Since the refund under the said amen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tempt to deny or to vary the credit availed during the period under consideration is not permissible. If the quantum of the Cenvat Credit is to be varied or to be denied on the ground that certain services do not qualify as input services or on the ground of no nexus , then the same could have been done only by taking recourse to Rule 14 ibid. 6. In view of the discussions made hereinabove in the preceding paragraphs, in my opinion since the provisions of Rule 14 ibid have not been invoked, the refund of Cenvat Credit as claimed by the Appellant under Rule 5 ibid cannot be denied to them and the same is admissible. Therefore, the Appeals filed by the Appellant are allowed with consequential relief, if any. Therefore it is settl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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