TaxTMI 
TaxTMI 
2016 (1) TMI 1130
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....pplications for refund of unutilized Cenvat credit lying in their Cenvat Credit account. The Adjudicating Authority vide their various Orders-in-Original rejected refund claims partially however partially refund claims were sanctioned. Aggrieved by the rejection portion of the orders-in-original, appellants filed appeal before the Commissioner (Appeals) who concurring with the views taken by the Original authority rejected all the appeals and upheld orders of the Adjudicating authority. Aggrieved by the impugned order, appellants filed these appeals. 3. Ms. Aparna Hirandagi with Ms. Manasi Patil, Ld. Counsels for the appellant submit that Ld. Commissioner(Appeals) upheld the rejection of refund claims on the ground that (i) some of the services do not have nexus with export of output services (ii) or not covered under input service definition (iii) or not essential (iv) or not related to output services, on this, she submits that the appellants before the lower authority described the use of such services and as per the use of the services it is clear that the services were used for providing output services which have been exported. She submits that the appellants have no....
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.... Ltd. Vs. Commissioner Central Excise (Appeals), Bangalore 2010 (17) S.T.R. 540 (Tri. - Bang.) x. Event Management Services 15. Dell International Services India (P.) Ltd Vs. Commissioner Central Excise (Appeals), Bangalore 2010 (17) S.T.R. 540 (Tri. - Bang.) xi. Erection, Commissioning Installation 16. CST v, Convergys India (P.) Ltd. 2009 (16) S.T.R. 198 (Tri. - Del.) - Affirmed by Punjab & Haryana Court in 2010 (20) S.T.R. 166 (P&H) xii. General Insurance services For Employees & Office Assets 17. Millipore India Limited vs CCE, Bangalore 2009 (13) S.T.R. 616 (Tri. - Bang.) Affirmed by Karnataka High Court in 2012 (26) S.T.R. 514 (Kar.) 18. CCE & ST, LTU, Bangalore vs Micro Labs Ltd.2012 (26) S.T.R. 383 (Kan) 19. CCE, Bangalore-III Vs Stanzen Toyotetsue India (P) Ltd. 2011 (23) S.T.R. 444 (Kar.) xiii. Health Service 20. Dell International Services India (P.) Ltd. Vs. Commissioner Central Excise (Appeals), Bangalore 2010 (17) S.T.R. 540 (Tri. - Bang.) xiv. Interior Decorator Service 21. Millipore India Limited Vs CCE, Bangalore 2009 (13)....
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.... Parason Machinery (I) Pvt. Ltd. Vs. Commissioner of Central Excise, Aurangabad 2009 (16) S.T.R. 20 (Tri. - Mumbai) 37. Castrol India Ltd. Vs. Commissioner of Central Excise, Vapi 2013 (30) S.T.R. 214 (Tri. - Ahmd.) She submits that more or less all the services on which refund claims were made have been held to be eligible input services in the above cited judgments, therefore the Ld. Commissioner(Appeals) has wrongly denied the refund claim. On query from the bench on the admissibility of refund in respect of capital goods, Ld. Counsel fairly concede that as per the Rule 5 of the CC Rules, 2004 and Notification issued there under, refund is admissible only in respect of input and input services used for providing output services. 4. On the other hand, Shri. S.L. Karoliya, Ld. Asstt. Commissioner(A.R.) appearing on behalf of the Revenue reiterates the findings of the impugned order. He further submits that all the subject services either do not have nexus with export of services or used for personal use of staff and employee. As per the amendment w.e.f. 1/4/2011 in the definition of 'Input Service', services for personal use of staff and employee....
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....ds would affect the services provided to our clients. -Considering the importance of information technology in our business and given that 100% of our services is exported the credit in relation to such expenses should qualify as input services. Thus the CENVAT credit of service tax paid on such service is admissible, IV. Business Support Service - Trinity Processing Services Ltd, UK (TPSL) has provided specialized technical services to the Appellant in the areas of premium processing and policy processing. In this connection, TPSL, U.K. provides services from time to time to the Appellant for use of business centre facilities in UK. The services has been used only in relation to providing services which are exported. The Appellant has paid Service Tax on amount paid to TPSL, U.K. as a recipient of services under reverse charge mechanism as the said foreign service provider does not have any office in India, the Appellant have, as a recipient of services, registered themselves and paid service tax on this Business Support service. These expenses are essential as without these services it would not be possible to provide output services. ....
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....ies of the client and for the use of business center facilities. The service has been used only in respect of the computerized data processing services rendered by the Appellant which are exported. The Appellant has paid Service Tax on amount paid to TPSL, U.K. as a recipient of services under reverse charge mechanism as the said foreign service provider does not have any office in India, The Appellant has, as a recipient of services, registered themselves and paid service tax on this Manpower Recruitment, Business Support service and Commercial Training & Coaching Service. This being very basic requirement of providing the services to the client. These expenses are essential as without these services it would not be possible to provide output services. - The Appellant has filed copies of G.A.R.7 challans towards payment of Service Tax as a recipient of services under mechanism and copy of Invoice and Bank Statement evidencing the payment, along with refund claim. IX. Event Management Service: - These services are in relation to employee welfare activities. Such activities are critical for the motivati....
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....ance policy, Group personal accident and Group mediclaim policy for employees from Future Generali India Insurance Company Limited and Birla Sun Life Insurance Co. Ltd. These expenses are also required for the safety and welfare of our employees. The human resources are the key resources for any KPO/BPO. The group insurance policy is helpful in keeping the attrition under control and is also helpful in motivating and retaining employees. - Further, the said CENVAT credit has been claimed up to 31/03/2011 only and after 01/04/2011 due to specific exclusion from the definition of Input Service, no CENVAT credit has been availed on the said service. For Office Assets - These are expense incurred for policy for loss of Cash in transit from Bank & Fire & Burglary policy for Assets Future Generali India Insurance Company Limited. We have taken insurance cover for Office Assets including Cash lying in safe box. In the day to day operations of our business, we are required to keep cash up to Rs. 50,000/- approx. Further, we also withdraw & then carry cash from the Bank premises to our Office premises. This handling of cash is a routine business operat....
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.... business world, no one can think of business working without legal services. It is an integral part of Business. Legal service is specifically covered under the inclusive part of the definition of input service. XVI. Management, Maintenance & Repairs Service - The Appellant have incurred expenses in connection with repairing of meeting room table, chairs, storage units and providing and fixing storage and filing cabinets for office, AMC for Computer Servers, Printers, Scanners and painting of office premises. These expenses are incurred in connection with the regular maintenance work of the office premises, which are required to enable us to provide the output services. The repairs of the premises of output services provider or an office relating to such premises is specifically covered under the inclusive part of the definition of input service. - The Appellant has filed copies of input invoices, details of input services and their nexus with the output services along with the refund claim. XVII. Management Consultancy Service - The Appellant had engaged the services of Management Consultants/ Chartered Accountants towards providing ad....
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.... The premises from which we operate and carry out business is taken on lease from Godrej and Boyce Mfg. Co. at Vikhroli, Akruti SMC Joint Venture at Thane and L&T Ltd at Powai under Leave and Licence Agreement. We pay monthly rent under the category Renting of Immovable property and Business support services against the use of premises and for the amenities and facilities provided to us in the said premises. Hence, unless we pay the rent for our office, it would not be possible for us to provide output services. It is the duty of facility provider to maintain and provide the amenities and services such as Diesel Generator Backup and repair and maintenance of Diesel Generator backup, AMC charges for Air conditioning plant, utility services provided by Municipal Corporation and other such services provided during the term of agreement, maintenance of the Electrical system, maintenance of Plumbing system, Operation and maintenance of all the pumps, Operation of fire-fighting system, Operation of sewage treatment plant and maintenance, Garbage and waste management, Water tank cleaning. The aforesaid charges are included in maintenance charges which are in the nature of Renting of Prope....
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....ssential to provide output services exported. XXIII. Real Estate Agent Service - These are the expenses incurred for the services of real estate used in connection with registration of Leave and License agreement of Office premises used for providing output services exported. This expense is incurred in relation to business operations and is specifically covered under Rule 6(5) of CC Rules, 2004 and hence, eligible for availment of CENVAT Credit and therefore, also for refund. XXIV. Testing Inspection & Cetification Service - The Appellant had engaged the services of M/s. Geo Chem Laboratories Pvt. Ltd. for testing of water supplied in the office premises. Its legal requirement of the company to ensure that supply of water is pure and safe for use in office premises from where we provide output services exported. Hence testing charges for water qualify as input service which is used in providing output services which are exported. XXV. Works Contract Service - The Appellant have incurred expenses in connection with repairing of platform shutter and making of wooden frame and aluminum & PVC panel shutter in our office premises. These e....