2016 (9) TMI 540

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.... 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 the staff which is a pre-requisite extended to the employees. Foreign exchange s....

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....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 services. 7. Shri S. Nagalingam, A.C. (A.R) appearing for the Revenue re-iterated the Order in Appeal. ....

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.... 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 expenditure. The denial of credit is not warranted. Accordingly, the claim of CENVAT Credit on tour operator service is allowed. 2) Travel Agenc....

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....ker 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 to provision of output service and accordingly shall be entitled for refund 4) Renting of Immovable Property  It is submitted by the appellant that the rented pr....

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....amely 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 renting of immovable property service is having direct nexus in the manufacture of goods. Rule 2(1) of CCR, 2004, clearly mentions that service utilized in or in relation to manu....