TaxTMI 
TaxTMI 
2019 (1) TMI 1110
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....isdictional service tax authorities, claiming refund of accumulated Cenvat credit, in terms of Rule 5 of the Cenvat Credit Rules, 2004 read with the notifications issued there under. The refund applications filed by the applicant were partly allowed by the refund sanctioning authority. The remaining part of the refund claimed amount was rejected on the ground that the input services have not gone for consumption and have no nexus with the output service; that invoices are greater than one year old; that address was not matching as per ST 2 returns; that invoices were not submitted and Cenvat credit availed on the basis of credit notes. Feeling aggrieved with the adjudication orders in rejecting the refund claims, the appellant had filed appeals before the Ld. Commissioner (Appeals), which were disposed of by the impugned order dated 10.10.2017. In the impugned order, the Ld. Commissioner (Appeals) has allowed the refund benefit in respect of some of the services and denied such benefit in respect of the other services, holding that those services have no nexus with the output services provided by the appellant. With regard to invoice greater than one year old, he has held that date....
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....zed herein below: Sr No. Category of service Nexus / Justification 1. Renting of Immovable Property Business operations i.e. export of services are operated from premises obtained under lease rent. Renting of immovable property services serves as a pre-requisite service, without which Appellant will not be able to provide its output services. 2. Real Estate Agency Services The appellant had procured housekeeping/facility management services from CBRC South Asia Private Ltd. ('vendor'). However, inadvertently the vendor had mentioned the category of service on the invoice as 'real estate agent's services'. The invoice provided by the vendor mentioned the categories of management, maintenance and repair services, cleaning services as well as business auxiliary services, in addition to 'real estate services'. The said services were procured from the vendor under he category of 'cleaning service'. A copy of the certificate issued by the vendor in this regard has been submitted, which has been sanctioned in the impugned order. Thus, such services have a direct nexus with the output services exported and shall qualify as in input service as pe....
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....able properties from fire and burglary. Further, international business travel policy has been taken for the employees who travel across the globe for rendering output services. 9. Mandap Keeper's Service The Appellant has availed the mandap keeper's services to conduct various official or business functions. Therefore, these services are covered under the 'activities relating to business' and qualify as 'input service' as defined under CENVAT Rules. 10. Commercial training and coaching The Appellant has availed these services for imparting knowledge to its employees and to keep them updated. These trainings inter alia include providing trainings on Microsoft office, banking regulations, US GAAP and IFRS etc. Further, coaching and training is included in the inclusive part of the definition of input services. 11. Membership Fees The Appellant has obtained membership of the National Association of Software and Services Companies (NASSCOM), for which is pays membership fees. This organization provides access to industry trends, networking opportunities and other activities, which is instrumental to the effective and efficient functioning of the business of the Company. 12. ....
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....learly shows that those services have nexus with the output service and that such services were in fact, required for smooth business transactions of exportation of service. In this context, the Tax Research Unit of CBEC vide Circular No. 120/01/2010-ST dated 19.01.2010 has clarified that renting of premises, right to use software, maintenance and repair of equipment, telecommunication facilities etc. are directly relatable to the export business undertaken by the BPO/Call centers. Further, it has also been clarified that since those offices run on 24x7 basis, it is the necessary pre-requisite that the employer should provide certain facilitates in the form of services to its employees to ensure that the output service is provided efficiently; and accordingly, it was clarified that the services like outdoor catering or rent-a-cab to pick-up and dropping of the employees, would be eligible for credit. Therefore, I do not find any substance in the impugned order, so far as it denied the refund benefit on the disputed services, holding that there is no nexus between those services and the output service exported by the appellant. 7.2 The refund applications filed by the appellant dur....