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Appeal Nos. ST/30212-30214/2018

2. Heard both sides and perused the records.

3. The brief facts of the case are that the appellant is an exporter engaged in the export of Information Technology services. They also rendered services to their Indian clients. But the bulk of their turnover is export of services and hence they accumulated CENVAT credit. They had filed an application under Rule 5 of CENVAT Credit Rules, 2004 to claim refund of CENVAT credit in proportion to their export services. These claims were rejected by the Adjudicating Authority on the ground that they had not debited the CENVAT credit amount from their books of accounts at the time of making the claim as required. It is further alleged that the refund claim amount was not reflected in the Service Tax returns filed by the appellant during the relevant period and the general ledger of the assesse to show that the duty has been debited cannot be considered as evidence, it being a private record.

Refund amount = (Export turnover of goods+ Export turnover of services) x Net CENVAT credit Total turnover Where,-

(A) "Refund amount" means the maximum refund that is admissible;

(B) "Net CENVAT credit" means total CENVAT credit availed on inputs and input services by the manufacturer or the output service provider reduced by the amount reversed in terms of sub-rule (5C) of rule 3, during the relevant period;

(C) "Export turnover of goods" means the value of final products and intermediate products cleared during the relevant period and exported without payment of Central Excise duty under bond or letter of undertaking;

(D) "Export turnover of services" means the value of the export service calculated in the following manner, namely:-

Export turnover of services = payments received during the relevant period for export services + export services whose provision has been completed for which payment had been received in advance in any period prior to the relevant period - advances received for export services for which the provision of service has not been completed during the relevant period;

(E) "Total turnover" means sum total of the value of -

(a) all excisable goods cleared during the relevant period including exempted goods, dutiable goods and excisable goods exported;

(b) export turnover of services determined in terms of clause (D) of sub-rule (1) above and the value of all other services, during the relevant period; and

(c) all inputs removed as such under sub-rule (5) of rule 3 against an invoice, during the period for which the claim is filed.