Nexus between input services & exported services not required to be established for refund of Cenvat Credit: CESTAT
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- Last Updated on 23 November, 2021
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Case Details: Cross Tab Marketing Services (P.) Ltd. v. Commissioner of Central Goods and Services Tax, Mumbai - [2021] 132 taxmann.com 201 (Mumbai - CESTAT)
Judiciary and Counsel Details
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- Sanjiv Srivastava, Technical Member
- Parth Shah, CA for the Appellant.
- Dilip Shinde, Asstt. Commissioner (AR) for the Respondent.
Facts of the Case
The appellant was engaged in export of service and was availing the benefit of Cenvat credit of duty and service tax paid on various input services. It filed a refund claim seeking the refund of accumulated credit in terms of provisions of Rule 5 of CENVAT Credit Rules, 2004. The refund claim was rejected and it filed appeal against the same.
CESTAT Held
The Honorable CESTAT observed that rule 5 does not require establishment of any nexus between the input services and the exported services. The rule only provides that the admissible refund will be proportional to the ratio of export turnover of goods and services to the total turnover, during the period under consideration, of the Net Cenvat credit taken during that period. Thus, it was held that entire credit as claimed by appellant for determining refund amount would be admissible unless held inadmissible by invoking the provisions of Rule 14 of the CENVAT Credit Rules, 2004.
List of Cases Referred to
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- Accelya Kale Solutions Ltd. v. CCGST&CE [Appeal No. ST/85733/2018, dated 29-5-2018] (para 4.4)
- TPG Capital India (P.) Ltd. v. Commissioner of CGST [Final Order Nos. A/86651-86655/2019, dated 20-9-2019] (para 4.5).
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