The Tribunal rightly held that the export need not necessarily confine to dutiable products or taxable services. A refund under Rule 5 of CENVAT Rules can be granted by the Excise Department Authorities even though the Services exported out of India are exempted from payment of any Duty.
Cenvat Credit Rules, 2004 –– The appellant department filed appeal against the order dated 14.03.2018 passed by the Customs, Excise and Service Tax Appellate Tribunal, South Zonal Bench, Chennai. The assessee is a 100% EOU and exports taxable services like Call Centre Service and Technical Support Service. The assessee claimed refund under Rule 5 of the CENVAT Credit Rules, 2004. The original authority rejected the claim of refund partially. The assessee being aggrieved by the order-in-original filed an appeal before the Commissioner of Central Excise [Appeals], Chennai. The said appeal was allowed by order dated 30.06.2010. The revenue being aggrieved by the order passed by the Commissioner [Appeals] filed an appeal before the Tribunal which was dismissed by the impugned order. The appellant counsel submitted that an assessee is not entitled to take CENVAT credit of the service tax paid on input services used for provision of exempted service. The counsel for the respondent submitted that Tribunal rightly took note of the distinction brought out in the language adopted in Rule 5 and Rul6 of the CCR and the Tribunal also took note of the earlier decisions of the other Hon'ble High Courts and rightly dismissed the appeal filed by the revenue. The court observed that the Tribunal has rightly interpreted the words used in Rules 5 and 6 by pointing out that the words used in Rule 6 are “exempted goods/services”, whereas Rule 5 does not use these words and uses the words “final product/output service”. Furthermore, the Tribunal also took note of the decision in the case of Repro India Limited and Drish Shoes Limited. Therefore, the Tribunal rightly held that the export need not necessarily confine to dutiable products or taxable services.
Held that:- The Hon’ble High Court dismissed the appeal filed by the revenue.
The Tribunal rightly held that the export need not necessarily confine to dutiable products or taxable services. A refund under Rule 5 of CENVAT Rules can be granted by the Excise Department Authorities even though the Services exported out of India are exempted from payment of any Duty.
Cenvat Credit Rules, 2004 –– The appellant department filed appeal against the order dated 14.03.2018 passed by the Customs, Excise and Service Tax Appellate Tribunal, South Zonal Bench, Chennai. The assessee is a 100% EOU and exports taxable services like Call Centre Service and Technical Support Service. The assessee claimed refund under Rule 5 of the CENVAT Credit Rules, 2004. The original authority rejected the claim of refund partially. The assessee being aggrieved by the order-in-original filed an appeal before the Commissioner of Central Excise [Appeals], Chennai. The said appeal was allowed by order dated 30.06.2010. The revenue being aggrieved by the order passed by the Commissioner [Appeals] filed an appeal before the Tribunal which was dismissed by the impugned order. The appellant counsel submitted that an assessee is not entitled to take CENVAT credit of the service tax paid on input services used for provision of exempted service. The counsel for the respondent submitted that Tribunal rightly took note of the distinction brought out in the language adopted in Rule 5 and Rul6 of the CCR and the Tribunal also took note of the earlier decisions of the other Hon'ble High Courts and rightly dismissed the appeal filed by the revenue. The court observed that the Tribunal has rightly interpreted the words used in Rules 5 and 6 by pointing out that the words used in Rule 6 are “exempted goods/services”, whereas Rule 5 does not use these words and uses the words “final product/output service”. Furthermore, the Tribunal also took note of the decision in the case of Repro India Limited and Drish Shoes Limited. Therefore, the Tribunal rightly held that the export need not necessarily confine to dutiable products or taxable services.
Held that:- The Hon’ble High Court dismissed the appeal filed by the revenue.