TaxTMI 
TaxTMI 
2017 (6) TMI 947
X X X X Extracts X X X X
X X X X Extracts X X X X
....e, Tour Operators service and travel agent service on the ground that they are not essential for discharge of the output services. 2 Briefly, the facts of the present case are that the appellant is an EOU and is also registered under the provisions of Service Tax. The appellant is primarily engaged in the business of exporting Information Technology and Enabled Services, engineering, design and technical support services to the group companies located outside India hence qualifying as export of service as per Rule 3 of the Export of Service Rules, 2005. Appellant had filed refund claim within the time limits stipulated under Section 11B of the Central Excise Act, 1944 for Rs. 2,67,60,540/- for the period October 2007 to March 2008 under Ru....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 3 Heard both parties and perused records. 4.1. Learned counsel for the appellant submitted that the impugned order is not sustainable in law as the same has been passed without properly considering the definition of input service as provided in Rule 2(l) of CCR. He further submitted that the impugned order is contrary to the binding judicial precedent on the same issues. He further submitted that there is no requirement under Rule 5 as it stood during the disputed period to prove a correlation between the input services received and the services exported outside India. He further submitted that Rule 5 does not even state that the input services must be directly used by the service provider for providing his output services or that a one-....
X X X X Extracts X X X X
X X X X Extracts X X X X
....r not essential for the functioning of the business i.e. provision of output service by the company. He also submitted that it is well settled rule of law that conducting business is entirely taxpayer's prerogative and Revenue authorities should not decide whether a particular expenditure is necessary for the taxpayer or not. The courts from time to time have held that tax authorities cannot question the commercial wisdom of taxpayer in undertaking any expenditure for undertaking its business and it is not correct on the part of the Revenue authorities to ask the taxpayer to prove that all expenses Incurred for its business should result in some kind of benefit to the taxpayer and in support of this principle, he relied upon the decisio....
X X X X Extracts X X X X
X X X X Extracts X X X X
....p of the organization and (c) to organize staff get together, HR functions etc. and these meetings are necessary to provide insight about the progress of the company to employees. These activities increases the morale of employees and lead to team building in the organization without which an organization cannot render services effectively and are very crucial for rendering output services. The appellant has also filed the invoices with regard to this event management services and he further placed reliance on the following decisions which have held that event management services fall under the definition of input services. a. CCE, Delhi-III Vs. Maruti Suzuki India Ltd. [CEA No.9 of 2016 decided by the Hon'ble Punjab & Haryana High cou....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ars flights for the purpose of business operations. Since the services are used for providing the output services, the appellants are eligible for availment of CENVAT credit on the same. For this submissions he relied upon the following decisions:- a. ARM Embedded Technologies Pvt Ltd. Vs. CCE C&ST [2016-TIOL-2565-CESTAT-BANG] b Accenture Services Pvt. Ltd. Vs. CST, Mumbai-II [2015-VIL-749-CESTAT-MUM-ST] c. Reliance Industries Ltd. Vs. CCE&ST LTU, Mumbai [2016-TIOL-2392-CESTAT-MUM] d Caliber Point Business Solutions Ltd. Vs. CST Mumbai [2010(18) STR 737 (Tri. Mumbai)] e. Semco Electric Pvt. Ltd. Vs. CCE, Pune [2010(18) STR 177 (Tri. Mumbai)] 6. On the other hand, the learned AR reiterated the findings of the impugned order. 7. After ....