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Appearance:

Mr. Deepak Kumar Jain, CA DJHS & ASSOCIATES CHARTERED ACCOUNTANT 'GREEN APPLE', NO.16, 1ST FLOOR, MURPHY ROAD, ULSOOR BANGALORE - 560008 KARNATAKA For the Appellant Dr. Ezhilmathi, AR For the Respondent Date of Hearing: 08/12/2017 Date of Decision: 08/12/2017 CORAM:

HON'BLE SHRI S.S GARG, JUDICIAL MEMBER HON'BLE SHRI V. PADMANABHAN, TECHNICAL MEMBER Final Order No. 23114-23130 / 2017 Per : V. PADMANABHAN All these appeals have been filed against various orders of the Commissioner (A) covering the period from April 2008 to June 2012. The appellant is engaged in developing and export of software. They availed CENVAT credit on various input services. Since almost the entire turnover of the appellants unit is made up of export of software services, they claimed refund of the accumulated CENVAT Credit under Rule 5 of CENVAT Credit Rules (CCR) from time to time. In the various impugned orders, several input services have been held to be not eligible for availing CENVAT credit for the reasons that these services have no nexus with the output service of the appellant i.e., the Information Technology Software Service. In addition, various amounts also came to be disallowed for a variety of other reasons. Aggrieved by these impugned orders, the present appeals have been filed.

Learned DR for the Revenue reiterated the findings of the authorities below to the effect that it is only the net CENVAT credit which is required to be taken as per CENVAT Credit Rules. However, she further submits that the definition of exports turnover services and total turnover was amended with effect from 1.4.2012 by Notification No.18/2012-CX (NT) dated 17.3.2012 and it was specified that the same is to be determined on the basis of realization of export proceeds and not on the basis of export invoice value. This fact also needs to be verified.

After considering the submissions of both parties on the subject, we are of the view that the dispute is with reference to whether the maximum refund allowable is to be calculated on the basis of gross or net CENVAT credit which has been taken by the appellant. The related point is also with reference to the definition of exports turnover services from 4/2012 which may also have a bearing on the total refund allowable to the appellant. In view of the above, we set aside the findings of the lower authorities on the subject matter of export turnover ratio and remand the issue back to the original authority for redetermination of the same keeping in view the decisions on the subject including the decisions cited above and also re-determine such refund amounts keeping in view the amended definition of exports turnover services from 1.4.2012.