2017 (11) TMI 404 - AT - Service Tax

Appellant granted Cenvat credit & refund for services under 'Business Auxiliary Services'

Sigma Vibracoustic (India) Pvt. Limited Versus C.C.E. & S.T., Chandigarh

The Tribunal allowed the appellant to take Cenvat credit on Technical Inspection and Clearing and Forwarding services and granted a refund for services ... CENVAT credit - Refund claim - N/N. 41/2007-S.T., dated 6-10-2007 - Technical Inspection and Certification Agency services - Clearing and Forwarding Agent services - Held that: - the appellant is seeking to avail Cenvat credit on these services, on which initially they sought refund and refund has not been granted to the appellant - As it is not disputed that these services are input services for the appellant, Cenvat credit on these services are allowed. Service provided by the Commission Agent located outside India - refund claim - Held that: - the said service has been availed by the appellant for export of goods and Service Tax has been paid thereon, which has not been disputed - appellant is entitled to take refund. Appeal allowed - decided in favor of appellant. Issues involved:Appeal against rejection of refund claims under Notification No. 41/2007-S.T. for various services like Technical Inspection, Clearing and Forwarding, and Commission Agent services under 'Business Auxiliary Services'.Analysis:The appellant appealed against the rejection of refund claims for services like Technical Inspection, Clearing and Forwarding, and services by a Commission Agent located outside India under 'Business Auxiliary Services'. The appellant argued that if refund is not admissible, they should be allowed Cenvat credit on these services. The Tribunal referred to a previous decision where it was held that invoices issued by the Commission Agent are sufficient to satisfy the conditions for refund under Notification No. 41/2007-S.T. The Tribunal found that the appellant is entitled to take Cenvat credit on Technical Inspection and Clearing and Forwarding services as they are input services for the appellant.Regarding the service provided by the Commission Agent located outside India, it was found that the service was availed for the export of goods, and Service Tax was paid accordingly. The Tribunal held that the appellant is entitled to claim a refund under Notification No. 41/2007-S.T. based on the previous decision referenced. Therefore, the Tribunal concluded that the appellant is entitled to a refund for the services provided by the Commission Agent located outside India.In conclusion, the appeals were disposed of in favor of the appellant, allowing them to take Cenvat credit on Technical Inspection and Clearing and Forwarding services, and granting a refund for the services provided by the Commission Agent located outside India.