COMMISSIONER OF CUS. Vs. KNOAH SOLUTIONS PVT. LTD.

JUDGEMENT

(1.) THESE applications are filed by the revenue for staying the operation of the orders impugned.

(2.) THE impugned orders vacated the orders of the original authority rejecting the applications for refund of accumulated CENVAT credit. The Appellants (sic) (Respondents) are STPI Units engaged in export of services. The revenue has filed appeals challenging the orders of the Commissioner (Appeals) on the ground that the Appellants (sic) (Respondents) were not entitled to take CENVAT credit of service tax paid on input services used in or in relation to production of output services. It is argued that the output services of the Appellants are not taxable and therefore they cannot avail CENVAT credit in view of the specific prohibition contained in Rule 6(1) of CENVAT Credit Rules, 2004 (CCR). The output service involved i.e., IT service was excluded from 'Business Auxiliary Service'; the same was not taxable services for the Assessee to qualify for input credit.

(3.) LEARNED Counsel representing the Respondent submits that as per the provisions contained in the policy STPI Units are entitled to CENVAT credit of service tax paid on input services used in production of output services. As per Rule 5 of CCR, for any reason, if the Assessee is not able to utilize the credit, it will be entitled for refund. It is argued that the impugned orders have been passed in accordance with law.