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TMI Blog2025 (2) TMI 899X X X X Extracts X X X X X X X X Extracts X X X X ..... No. ST/2136/2012), against OIO dt.03.08.2012 (Appeal No. ST/3009/2012) and against OIO dt.15.05.2013 (Appeal No. ST/27543/2013) (impugned orders). Vide the said impugned orders, the Adjudicating Authority has denied certain Cenvat credit in respect of input services used for exporting output services on various grounds including their output service not being a taxable service as also on account of input services not having any nexus with the output service. 2. Learned Advocate for the appellant submits that they are providing various output services like 'Business Support Services' (BSS) and 'Information Technology Software Services' (ITSS) and for that they have entered into Agreements dated 15.08.2005, 01.01.2007 & 31.08.2009 with thei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppeal has been filed by the department, the department cannot take contrary stand that there is no nexus. Meanwhile, three SCNs dated 20.04.2011, 14.10.2011 & 19.04.2012 were issued proposing to deny credit taken on the aforesaid input services used for export of the aforesaid output services, based on the allegation that the services exported are not taxable services and learned Commissioner has upheld those allegations and denied credit in terms of impugned orders. The appellants are in appeals against these impugned orders. 3. The issue, in brief, is that the appellants were exporting certain services, which the department felt were not in the nature of taxable service. The department was also of the view that some of the input services ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ating Authority has examined various services covered in the agreements between the appellant and their parent company. He observed that unless the export invoice reflects clear description of service, it would not be possible to come to the conclusion as regards nature of the service. Further, he has also examined the claimed services within which the services contained in the agreements would fall i.e., ITSS and BSS. Since there were no details available in the invoices, the proper classification could not be arrived at and held that unless the output service is taxable service classifiable under one of the taxable services, it would be in the category of non-taxable service or exempt service. The generic reference and description given i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issue i.e., whether the services exported by the appellants can be considered as taxable service or as exempt service, in the fact of the case, the Adjudicating Authorities have gone by the description in the export invoices and were not able to classify or correlate those services with the agreements giving detailed description of such services and therefore, held that these services are to be treated as non-taxable/exempt services. We find that admittedly, there is an agreement in terms of which many kinds of services are required to be provided to their parent company. However, there has not been any attempt to classify those services under the category of one or more taxable services, after going through the details of the said service ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. In other words, during that period, except for the specified services, which were treated as taxable services, rest of the services, which are not explicitly covered within the definition of service, were not chargeable to tax or treated as non-taxable/exempt services. Therefore, the Adjudicating Authority was right when he came to the conclusion that in the absence of specific details to be given in the export invoice, as also the correlation between the description given in export invoices and the details given in the agreements, it would not be possible to classify the services. At the same time, we feel that some of these activities would definitely be in the nature of service falling under certain taxable service and therefore, to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hich the appellant considered in their favour and rejected their claim without justifiable reasons and findings. He had gone beyond the scope of the show cause notice which is in violation of principles of natural justice. Therefore, I find it appropriate that the issue is re-examined afresh ensuring principles of natural justice." Therefore, this is not the finalization of classification as proposed/submitted by the appellant, rather only an observation by the Commissioner (Appeals) and the entire matter was remanded back to the Original Authority for reexamination and to be decided on merit. 13. We also note that since they have already held that the export service is non-taxable/exempt service, they have not gone into the issue of ineli ..... X X X X Extracts X X X X X X X X Extracts X X X X
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