2018 (8) TMI 19 – CESTAT MUMBAI – TMI – Refund claim – service tax paid on the input services, which were used in output service, exported by the appellant – denial on account of nexus – Rule 5 of the CCR read with N/N. 27/2012-CE(NT) dated 18.06.2012 – Held 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 assessee.
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Since the refund under the said amended rule is governed on the basis of receipt of export turnover to the total turnover, the establishing the nexus between the input and output service cannot be insisted upon for consideration of the refund application – refund cannot be denied – appeal allowed – decided in fav
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input services, which were used in output service, exported by the appellant. While adjudicating the refund claim amount of ₹ 39,51,995/- filed by the appellant, the original authority had allowed the refund benefit for ₹ 32,22,487/- and rejected the balance amount of ₹ 7,29,508/- on the ground that the disputed input services have no nexus with the output services provided by the appellant and that the disputed services are not confirming to the definition of input service defined under Rule 2(l) of Cenvat Credit Rules, 2004. On appeal, the learned Commissioner (Appeals) has allowed the refund benefit for ₹ 3,89,143/- and rejected the balance amount of ₹ 3,40,065/- on the ground that no nexus have been establ
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3.2012 has clarified as under:- F.1. Simplified scheme for refunds: 1. A simplified 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. ……………………………………………………………………… 3. On perusal of the statutory
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