2010 (7) TMI 105 - AT - Service Tax

Assessee's Claim for Refund Partially Disallowed by Appellate Tribunal

The Appellate Tribunal CESTAT, Chennai partly disallowed the assessee's claim for refund of unused input service tax credit as the input services were not ... Refund- The assessee’s claim for refund of unused input service tax credit availed for rendering output service exported by them has been partly disallowed to the extent of Rs.28,432/- and Rs.26,927/-. The reason for holding that credit is not admissible is that input services are not directly related to the output service provided by the assessees. Held that- in the light of the decision of KBACE Tech Pvt. Ltd. Vs CCE & ST, Bangalore [2010 (18) STR 281], set aside the impugned orders and remit the case to the adjudicating authority to decide afresh. The appeals are thus allowed by way of remand. The Appellate Tribunal CESTAT, Chennai partly disallowed the assessee's claim for refund of unused input service tax credit. The reason was that the input services were not directly related to the output service provided by the assessees. Refund is admissible only on services consumed for providing output services. The case was remanded to the adjudicating authority for a fresh decision in light of the precedent. The appeals were allowed by way of remand.