A Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), allowed refund of unutilised CENVAT Credit as inputs were taken on export of services.
The appellant company, M/s. Warburg Pincus India Pvt Ltd is engaged in the business of providing investment advisory service to its customers M/s. Warburg Pincus LLC, USA. The entire turnover being export of service to USA without payment of Service Tax, unutilised CENVAT Credit on input services was sought to be refunded but the refund Sanctioning Authority, had allowed part refund.
The Authority also rejected same credits as inadmissible against which Appellant preferred appeals before the Commissioner of Central Tax (Appeals), who disposed of the by sanctioning refund to the tune of Rupees two crores and rejecting refund of Rupees thirteen lakhs on the ground that CENVAT Credit availed on Club or Association Services etc were not eligible input services as those have no nexus with the services exported by the Appellant. Legality of the said order to the extent of rejection of refund is the issue in the appeal.
The Counsel for the appellant, relied on the judgment in Warburg Pincus India Pvt Ltd. v. Commissioner of Central Excise, Mumbai, wherein the refund on inputs were allowed in respect of Club or Association Services, Services by Airconditioned Restaurants, Short Term Hotel Accommodation Services, Mandap Keeper Services, Convention Services, Cable Operator Services and for Sponsorship Services as well as Event Management Services, the issue of availment of CENVAT Credits on these two services were also confirmed.
A Bench consisting of Dr Suvendu Kumar Pati, Judicial Member observed that “Input services availed by the Appellant as eligible credits and in view of the fact that Notification No. 27/2012-CE (NT) permits refund of such unutilised credits of the exporters. The Appellant is eligible also to get refund of the unutilised CENVAT Credit to the tune of Rupees thirteen lakhs with applicable interest and the Respondent-Department is directed to pay the same within two months of receipt of this order.”
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