Commissioner Of Service Tax, Chennai vs M/S. Reed Elsevier Pvt. Ltd

[Arising out of Order-in-Appeal No.159 M-ST), dated 19.09.2011 passed by the Commissioner of Central Excise (Appeals), Chennai]

COMMISSIONER OF SERVICE TAX, CHENNAI APPELLANT

Versus

M/s. REED ELSEVIER PVT. LTD. RESPONDENT

Appearance:

For the Appellant Shri M. Rammohan Rao, JC (AR)

For the Respondent None

CORAM:

Honble Shri D.N. Panda, Judicial Member

Date of hearing/decision 24-08-2015

FINAL ORDER NO. 41175 / 2015

When adjournment was sought, appeal was examined with the assistance of Revenue.

2. Para 1.1. of the appellate order shows that assessee is engaged in the export of services. Cenvat credit in respect of unutilised input credit was accumulated in the record of the assessee. When refund thereof was claimed that was disallowed by the authority below.

2. There is no dispute that export of good and services are not dutiable. Therefore, according to Rule 5 of the Cenvat Credit Rules, 2004, when duty or tax paid on input or input service accumulates and such duty or tax so accumulated is eligible to be allowed as Cenvat credit but not utilised by the exporter, he is entitled to refund thereof.

3. In view of the statutory provision in the above Rule, Revenue appeal fails and assessee is entitled to the refund as has been held by Commissioner (Appeals). His order is therefore upheld, dismissing Revenue appeal.

4. It may be stated that registration is not criteria to allow refund when the very output or output service is not at all liable to duty/tax, following the decision of the Honble High Court of Karnataka in the case of mPortal India Wireless Solutions P. Ltd. Vs Commissioner of Service Tax, Bangalore reported in 2012 (27) S.T.R.134 (Kar.).

(Dictated and pronounced in open court)

(D.N. PANDA) JUDICIAL MEMBER

ksr 10-09-2015

DRAFT Remarks

I II III

Date of dictation 24.08.2015

Draft Order - Date of typing 06.09.2015

Fair Order Typing 10.09.2015

Date of number and date of dispatch 11.09.2015

4 ST/00574/2011