Cenvat credit for export-related input services upheld where consultancy, training, maintenance and security supported IT-enabled services.

Cenvat credit and service tax refund could not be denied for consultancy, maintenance, training, customs handling and security services used in exporting IT-enabled services. The services were directly connected with business support and export operations: consultancy and customs handling supported export work, maintenance and repair related to audio-visual systems used for business meetings, training updated employees for business needs, and security services were linked to workplace safety and transport compliance. As the services were used in rendering exported services and the tax paid was undisputed, denial of credit was incorrect. The assessee was entitled to the claimed credit and refund, and the disallowance was set aside.

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Issues: Whether Cenvat credit and refund of service tax could be denied in respect of consultancy, maintenance, training, customs handling, and security services used in the course of exporting IT-enabled services.

Analysis: The services in question were found to have a direct connection with the assessee's business and export operations. The service tax paid by the service providers was not disputed. The consultancy and customs handling expenses related to business support and export-related work. The maintenance and repair services were used for audio-visual systems necessary for business meetings. Training services were incurred to update employees for the business. Security services were availed to protect women employees and were linked to compliance with the applicable statutory requirement for workplace safety and transportation. Since the services were used for rendering exported services, denial of credit was held to be incorrect.

Conclusion: The assessee was held entitled to the Cenvat credit and refund claimed, and the disallowance was set aside.

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