2015 (8) TMI 30 - AT - Service Tax

Tribunal allows refund on catering, maintenance, recruitment services under Notification No. 5/2006.

M/s ST Microelectronics Pvt Ltd Versus Commissioner of Central Excise And Service Tax, Noida

M/s ST Microelectronics Pvt Ltd Versus Commissioner of Central Excise And Service Tax, Noida - TMI Issues:Refund claim denial based on input service credit eligibility under Cenvat Credit Rules, 2004 for services like outdoor catering, maintenance and repair, manpower recruitment, ambulance service, and non-mentioning of service recipient.Analysis:1. The appellant appealed against the denial of a refund claim amounting to Rs. 15,72,298 for the period April to June 2010 under Notification No. 5/2006 related to unutilized input service credit for export of service.2. The Commissioner (Appeals) rejected the refund claim citing that certain services claimed by the appellant did not qualify as input services under Rule 2(1) of Cenvat Credit Rules, 2004, such as outdoor catering, maintenance and repair services, manpower recruitment services, and non-mentioning of service recipient details.3. The appellant argued that for outdoor catering services, they had already reversed a portion of the amount recovered from employees and were entitled to the remaining credit as per precedent rulings. Similarly, for maintenance and repair services, they justified their claim based on services availed for maintaining their office to provide output services. They also provided evidence supporting manpower recruitment services eligibility for credit.4. The appellant conceded the ineligibility for input service credit on ambulance services and non-mentioning of service recipient by Reliance Communications Ltd.5. The opposing argument highlighted the lack of proper service recipient description on invoices for manpower recruitment services, making Cenvat credit inadmissible as per Service Tax rules.6. The Agreement produced was for consulting engineering services, not manpower recruitment, challenging the appellant's claim for Cenvat credit on such services.7. The opposing party contended that the services claimed lacked a nexus with those provided by the appellant, emphasizing the requirement of a connection for Cenvat credit eligibility.8. After hearing both sides, the Tribunal ruled in favor of the appellant for outdoor catering services, maintenance and repair services, and manpower recruitment services, allowing input credit and subsequent refund claim under Notification No. 5/2006.9. However, input service credit was disallowed for ambulance services and non-mentioning of service recipient on invoices raised by Reliance Communication, as acknowledged by the appellant.10. The appeal was disposed of with the above decisions pronounced in open court.