Order Date – 10 January 2023

Parties: M/s Coface India Credit Management Services Private Limited Vs Commissioner of CGST & C. Ex., Belapur

Facts –

• The Appellant, M/s Coface India Credit Management Services Private Limited, filed a refund application under Rule 5 of the CENVAT Credit Rules, 2004, which had rejected on the ground that the opening balance in the CENVAT register should not be taken into consideration for the purpose of grant of refund benefit and that certain input services were not considered for refund inasmuch as those services have no nexus with the output services provided by the appellant.

Issue –

• Whether the appellant is eligible for refund?

Order –

• The Tribunal held that the CBE&C vide Circular No. 120/01/2010 dated 19.01.2010 has clarified that the closing balance of the previous quarter can be considered for utilization towards export as opening balance for the subsequent quarter.
• It was further held that the other issue is no more res integra in view of the decisions of the Tribunal in the case of Ness Technologies (I) Pvt. Ltd. Vs Commissioner of Service Tax Division-V, Mumbai -2016 (41) S.T.R. 984 (Tri.-Mumbai) held that while granting the refund benefit under Rule 5 ibid read with the notification issued thereunder, the Department cannot object to such claim of the assessee on the ground that there was no nexus between the input services and exportation of the output service.
• Hence the appeal is allowed.