Agilent Technologies International Pvt Ltd Vs Commissioner of Central Goods & Service Tax (CESTAT Chandigarh)
Summary: The Chandigarh Bench of the Customs, Excise and Service Tax Appellate Tribunal allowed the appeal of M/s Agilent Technologies International Pvt Ltd against denial of refund of unutilised CENVAT credit under Rule 5 of the CENVAT Credit Rules, 2004. The appellant was a 100% export unit providing Business Support Services and Information Technology Software Services to overseas entities under specific service agreements and exported those services without payment of service tax under the Export of Service Rules, 2005. It had claimed refund of unutilised CENVAT credit under Rule 5 read with Notification No. 5/2006-CE (N.T.) dated 14.03.2006 and Section 11B of the Central Excise Act, 1944.
Refund of ₹78,79,939 was rejected in respect of General Insurance Services, Works Contract Services and Commercial or Industrial Construction Services on the ground that the services lacked nexus with exported output services. Before the Tribunal, the appellant contended that availment of CENVAT credit, its utilisation and its refund were distinct aspects and that, where the Department had not challenged availment under Rule 14, refund could not subsequently be denied under Rule 5 by questioning the credit’s eligibility. It further submitted that the disputed services fell within the definition of “input service” under Rule 2(l), relying on numerous judicial decisions, and that direct nexus with the final output services was not necessary in view of Circular No. 120/1/2010-ST dated 19.01.2010 and the decision in Reliance Corporate IT Park Ltd. The Tribunal held that it was settled by various decisions that where availment of CENVAT credit had not been challenged by the Department under Rule 14, refund could not be denied by resorting to Rule 5.
