(1) There cannot be different yardsticks for establishing
the nexus for taking of credit and for refund of credit. Even if different
phrases are used under different rules of CENVAT Credit Rules, they have to be
construed in a harmonious manner. The phrase “used in” mentioned in the
Notification to show nexus should be interpreted in a harmonious manner. The
test to be applied to check whether nexus exists or not is that in case the
absence of input/input service adversely impacts quality and efficiency of
provision of service exported, it should be considered as eligible input or
input service for taking credit.
(2) To address similar problems of co-relation and scrutiny
of a large number of documents faced in another scheme, Finance Act, 2009
(Notification No. 17/2009-ST) had provided for the procedure of
self-certification of invoices about the co-relation and nexus between
inputs/input services and exports by the exporter or by the Chartered
Accountant. To follow similar procedure here also, the exporters are also
advised to provide a duly certified list of invoices and the departmental
officers are only required to make a basic scrutiny of the documents and, if
found in order, sanction the refund within one month.
The exporter should, along with the refund claim, file a
declaration in the prescribed manner as notified in this Circular.
(3) Sometimes, it is possible that during certain quarters,
there may not be any exports and therefore the exporter does not file any
claim though he receives inputs/input services during this period. In this
regard, the Board has clarified that since no bar is provided in the
notification, there should not be any objection in allowing refund of credit
of the past period in subsequent quarters.
(4) In case of incomplete invoices, the Department should
take a liberal view in view of various judicial pronouncements by Courts i.e.
invoices are incomplete but are complying with Rule 5 which provides, (i) so
far as the nature of the service which has been received by the exporter can
be ascertained; (ii) tax paid therein is clearly mentioned; and (iii) other
details as required under rule 4(a) are mentioned, the refund should be
allowed if the input service has a nexus with the services/goods exported as
discussed earlier.
