TaxTMI 
TaxTMI 
2016 (9) TMI 540
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....Credit Rules,2004 for the period April 2011 to Sep 2011. The Dy. Commissioner of Service Tax vide OIO no.51/2012 dtd.27.07.2012 sanctioned the refund to the extent of Rs. 43,72,367/- The OIO rejected the refund claim of Rs. 5,16,061/- being the credit taken on input services namely; (a) Tour Operator - Rs. 6,812/- (b) Travel Agents - Rs. 82,038/- (c) Foreign Exchange Services - Rs. 7,151/- (d) Renting of Immovable Property -Rs.4,20,060/- (e) Sum of Rs. 894/- being the excess credit taken. 3. The OIO rejected the refund claim of input services on the following grounds: Tour operator services and air ticketing agency services. The services are not used for providing output service but used by....
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....service providers only those services that are used directly for providing taxable services qualify as input service. b) That the input service should be directly used for providing taxable service and not in relation to providing output service as is available for manufacturing activity. c) The Order-in-Appeal has relied upon the decision in the case of Maruti Suzuki rendered by Supreme Court. 5. Aggrieved by the order of the Learned Commissioner(Appeals), the appellant has preferred an appeal before this Tribunal to the extent of Rs. 4,51,256/-. 6. Ms Radhika Chandrasekhar, Advocate, appearing for the Appellant re-iterated the grounds of appeal and submitted written submissions as to why refund needs to be allowed for the serv....
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....cilities to the employees. In support of their argument, the Appellant have relied on the following judicial precedents: a) Megma Design Automation (I) Pvt. Ltd. Vs CST Bangalore - 2015 (40) STR 800 (Tri.-Bang.) b) Hindustan Coco Cola Beverages Pvt. Ltd. Vs CCE Nashik 2015 (38) STR 129 (Tri.-Mumbai) I find that the main aim of cenvat credit scheme is to avoid the cascading effect of taxation i.e. to avoid imposition of tax on tax. The principle benefit intended through Cenvat Credit Scheme should not be lost sight of while interpreting the statutory provision. There is no doubt that the impugned services have been consumed by the appellant during the course of their business and have been accounted as business expenditu....
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....mitted by appellant that FOREX was purchased and the same was given to the employees who travel outside India in order to execute their work. The services of Forex broker has been utilized for foreign exchange. The appellant relies upon the decision in the case of Megma Design Automation (I) Pvt. Ltd. Vs CST 2015 (40) str 800; Hindustan Coca Cola Beverages Pvt. Ltd. Vs CCE Nasik- 2015 (38) STR 129. I find force in argument of the appellant as the expenditure has been incurred by the appellant for the purpose of providing its output service. The said service has not been specifically excluded under the definition of input service. The said service will qualify in the first limb of the definition of input service i.e. used in or in relation t....
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.... computers, allied equipments & gadgets and to accommodate the staff & employees. 12. It is an undisputed fact that the appellants are engaged in providing output service namely online database access and retrieval services, and it is impossible for the appellants to provide the service without building or a proper premises, absence of which would adversely affect the quality and efficiency of the provision of service exported. Therefore, as clarified by CBEC vide circular dated 19.01.2010, I find that rent has a direct nexus with the output service provided by the appellants and hence are eligible for the credit. In the case of India Trimmings Pvt Ltd Vs CCE Coimbatore 2016 (42) STR 552 (Tri.Che), this Tribunal had further held that ren....