ADOBE SYSTEMS INDIA PVT. LTD. Vs. COMMISSIONER OF C. EX. & S.T.
LAWS(CE)-2015-2-55
CUSTOMS EXCISE AND GOLD(CONTROL) APPELLATE TRIBUNAL
Decided on February 03,2015

Adobe Systems India Pvt. Ltd. Appellant
VERSUS
Commissioner of C. Ex. And S.T. Respondents

JUDGEMENT

ASHOK JINDAL - (1.)THE appellant is in appeal against the impugned order rejecting their refund claim under Rule 5 of the Cenvat Credit Rules, 2004 on the premise that inputs service credit availed by them does not conform under Rule 2(1) of the Cenvat Credit Rules, 2004.
(2.)Brief facts of the case are that appellant is providing output service namely Software Development Products and promotional activities of their foreign clients under the activity of business auxiliary services. As whole of the services are being exported by the appellant, therefore, input services credit got accumulated in Cenvat credit account, and therefore, they filed refund claim under Rule 5 of the Cenvat Credit Rules, 2004 for the credit lying unutilized in their Cenvat credit account. The refund claim was sought to be rejected on the premise that the input service namely Event Management availed by the appellant does not fall under the category of input service as per Rule 2(1) of the Cenvat Credit Rules. Part of the refund claim was allowed but balance of the refund claim was disallowed on the premise that some of the services availed does not fall under 2(1) of the Cenvat Credit Rules. Therefore, appellant is before me by way of these two appeals.
Learned Counsel for the appellant submits that under Rule 5 of the Cenvat Credit Rules, 2004 appellant is entitled to claim refund of unutilized Cenvat credit lying in their Cenvat credit account. Therefore, a show cause notice was not required to be issued for denying refund claim as they have correctly taken Cenvat credit under Rule 3 of the Cenvat Credit Rules, 2004. If same was required to be denied then the show cause notice was required to be issued under Rule 14 of the Cenvat Credit Rules, 2004 to deny availed inadmissible Cenvat credit but same has not been done. Therefore, Cenvat credit availed by them is correct and refund claim cannot be denied. On merits, he submits that services which were availed by them are exclusively used for promotion of the product of their foreign client by organizing events and promotional activities where they have hotel accommodation, etc., and made some event for selling of their product of foreign clients. These services does fall under exclusive clause of 2(1) of CC Rules, 2004. Therefore, refund claim cannot be denied to them by holding that these services does not fall under Rule 2(1) of the Cenvat Credit Rules, 2004.

(3.)ON the other hand, learned AR reiterates the findings of learned Commissioner (Appeals) and submits that these services have no relation to the export done by the appellant and therefore, they are not entitled for refund of accumulated Cenvat credit.
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