AI Drafter 
TaxTMI 
TaxTMI 
TaxTMI 
2018 (12) TMI 1481
X X X X Extracts X X X X
X X X X Extracts X X X X
....nvat Credit of service tax paid on the input services used/utilized for providing such output service. During the disputed period, the appellant had entered into agreement with M/s.K-Line Ship Management Co. Ltd. (KLSM), Tokyo, Japan, to undertake ship management services including recruitment, training and placing of sea farers on board for the vessels managed by KLSM, Japan. Since the appellant exported the entire output service to Japan in favour of the said principal, there was no scope for utilization of Cenvat Credit for payment of service tax on the output service. Thus, the appellant had filed refund applications, claiming refund of service tax paid on the input services used for exportation of the output service. The refund applica....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ovision of output service 7 Oct. 2015 to December 2015 Input service not consumed for provision of output service 8 April 2014 to June 2014 Input service not consumed for provision of output service 9 April 2013 to June 2013 Input service not consumed for provision of output service 10 July 2012 to Sep. 2012 Input service not consumed for provision of output service 11 Jan. 2012 to March 2012 Input service not consumed for provision of output service 12 Oct. 2011 to Dec. 2011 Input service not consumed for provision of output service 13 July 2013 to Sep. 2013 Input service not consumed for provision of output service 14 Jan. 2015 to March2015 Management training and coa....
X X X X Extracts X X X X
X X X X Extracts X X X X
....issioner (Appeals) that the input services were not consumed for provision of output service, the learned Advocate contended that the appellant being a 100% subsidiary of M/s.KLSM, Japan, the output service in entirety was provided to such parent company and in absence of any service being provided to the service recipient within the country, the service tax paid on the input services should be available as refund. With regard to payment of service tax on renting of immovable property service, the learned Advocate concedes that the appellant is not contesting denial of refund benefit on such service. 4. On the other hand, the learned DR appearing for the Revenue reiterates the findings recorded in the impugned order and further submits t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....the earlier period in accepting the fact that the assessee had provided taxable services to foreign clients, such stand cannot be altered at a subsequent stage for denial of the benefit on the ground that the service is not conforming to export of service. In this case, since the appellant is a subsidiary of foreign company and provides the output service in entirety to such parent company, there was no scope or occasion on the part of the appellant to utilize input service for providing output service to any service receiver, other than the parent company. Thus, in view of the fact that input services were used for providing the output service, which was exported, the appellant should statutorily be entitled for refund of service tax paid ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e refund benefit of service tax paid on the input service, Rule 5 of the rules provides for refund, subject to observance of the procedures laid down therein. The said rule provides the formula, which has to be complied with by the assessee for claiming the refund benefit. The authorities below have not disputed the fact that the appellant had not complied with the requirement of the said rules for claiming the refund benefit. However, the benefit of refund on those services had been denied on the sole ground that there was no nexus between such services with the output service provided by the appellant. With regard to establishing the nexus between the input and output services, the Tax Research Unit of CBEC vide letter dated 16.3.2012, ha....