9911796707
TMI Blog2024 (1) TMI 396X X X X Extracts X X X X X X X X Extracts X X X X ..... all. 3. We have perused the records and heard learned AR for Revenue. 4. The brief facts are that the Appellant filed, with the Department, the applications in Form-A for refund of unutilized Cenvat credit under Rule 5 of CCR read with Notification No.5/2006-CE (NT) dated 14.03.2006, for an amount of Rs.27,67,107/- on 19.04.2010 for April to June 2009 and Rs.25,70,771/- for June to September, 2009 respectively, totalling to Rs.53,37,878/- along with copies of input service invoices, export invoices, FIRCs, Bank Statements, Export Clearance Certificates, Agreements, etc. 5. The Department issued SCN vide OR No.148/2010 seeking why (a) Cenvat credit of Rs.14,13,899/- (out of the said refund claim of Rs.53,37,878/-) should not be disallowed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce service of Air Condition/Ductable split air condition/Blue Star cassette Sanyo. Further, an amount of Rs.63,337/- was disallowed on services received from outside India on the allegation that Appellant has failed to produce relevant documents evidencing payment of appropriate service tax and the invoices/documents issued by the service providers. Further, interest was demanded on the amount disallowed and equal amount of penalty was imposed under Rule 15 of CCR read with Sec 78 of the Act. 8. Being aggrieved, the Appellant preferred Appeal before the Commissioner (Appeals), who was pleased to reject the Appeal save and except, he reduced the amount of penalty under Rule 15(1) of CCR to Rs.3,50,000/-, observing that the SCN nowhere menti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -) to the extent of evidence available. d) The learned Commissioner (Appeals) has grossly erred in stating that there is no nexus between the input services availed by the Appellant and the output services rendered. e) The learned Commissioner (Appeals) has grossly erred in holding that : (i) The input service should have a direct nexus in providing the output service to avail Cenvat credit, when there is no such requirement. (ii) The non-receipt of those services (where input is disallowed) is not going to make any difference to the production of final products and/or such service, cannot be considered as input service, when without such input services it would not have become possible to provide output services. f) The learned C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cited is not applicable to the present case and more so when the Cenvat credit is reversed. 10. Learned AR for Revenue supports the Impugned Order. 11. Having considered the rival contentions, we find that the Appellant had given the categories of input services in dispute, in the reply to SCN as follows: Nature of input service Relevant sections in the Finance Act, 1994 Category of service in the Finance Act, 1994 Rent 90(a), 65(105)(zzzz) Renting of Immovable Property O & M charges 65(105)(zzg) Management, Maintenance or Repairs Fit out charges 65(105)(zzg) Management, Maintenance or Repairs Canteen charges 65(105)(zzt) Outdoor Caterer services Car Park charges 90(a), 65(105)(zzzz) Renting of Immovable Pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entire turnover comprises of export turnover only. Thus, there is no question of any utilization of the input tax credit for payment of any output tax and/or utilization of input tax credit. We further find that the Court below has rejected the input tax credit merely, on the nexus theory, observing that there is no direct nexus of input services in dispute, with the output services provided. We further find that the Board Circular No.120/01/2010-ST provides guidelines for harmonious interpretations of nexus between input services and output services provided. The Circular provides a test for testing the nexus viz., - if the absence of such input service adversely impacts the quality and efficiency of the provision of output service export ..... X X X X Extracts X X X X X X X X Extracts X X X X
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