2019 (2) TMI 19

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....redit admittedly availed by the Appellant in their ST-3 returns. 2. I have heard learned Counsel for the Appellant and learned Authorised Representative for the Revenue and perused the records. 3. Learned Counsel for the Appellant submitted that the learned Commissioner has erred in rejecting the refund claim filed by the Appellant under Rule 5 of CENVAT Credit Rules, 2004 read with Notification No. 27/2012-CE (NT) dated 18.06.2012. He further submitted that so far as the claim towards input services viz. "General Insurance Services", "Air Travel Agent Services", "Banking & Financial Services", "Storage and Warehousing Services" and "Business Auxiliary Services" are concerned, the same have already been allowed by the learned Commissioner in the Appellant's group entity Morgan Stanley Advantage Services Pvt. Ltd. He also produced the copy of the said order. 4. Learned Authorised Representative appearing on behalf of the Revenue reiterates the findings recorded in the impugned order and prayed for dismissal of the appeal. 5. During the course of hearing learned Counsel for the Appellant has also produced a chart indicating the amount in issue against each head, the said chart is....

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.... taken by the Appellant in relation to the financial risks during the course of business that may arise upon the appointment of the employees as Nominee Director/Alternate Director in the investee company and not for the personal consumption of the employees. The said input service is used in the course of provision of output service and has not only a nexus with the output services but is essential for the business of the Appellant, therefore the Appellant is eligible for CENVAT credit on "General Insurance Services". In the matter of Morgan Stanley Advantage Services Private Limited which is Appellant's group entity, the Adjudicating Authority in respect of refund claim for the period from April, 2016 to June, 2016 had admitted that the "General Insurance Services" procured by the claimant had direct nexus with output services and hence eligible for refund. 6. So far as "Air Travel Agent Services" are concerned, the Appellant has availed those services for booking air tickets for the travelling of its employees for official meetings with the client at various locations. Those meetings are conducted to enable to the Appellant to understand the needs of the overseas client and to ....

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....te for revision of Service Tax return for the aforesaid period. But while filing the Service Tax return for the period October, 2014 to March, 2015 the Appellant had reversed the CENVAT credit which was erroneously taken by them during the month of August, 2014 from the total availment for the month of October, 2014 and the CENVAT credit availmnet for the said month of October, 2014 was done in the following manner:- Particulars   Amount CENVAT credit availed during the month of October 2014 A 11,29,175 Less: Erroneous availment of CENVAT credit in the month of August 2014 B (7,70,687) CENVAT credit availed (as reflected in service tax return) C = A-B 3,58,488 Although the Appellant could have reduced the aforesaid amount which was erroneously taken from the opening balance for the month October 2014, but according to them, then there would have been a mis-match between the opening and closing balance for the month of September, 2014 & October, 2014 respectively. In order to avoid the mismatch the Appellant had adjusted the excess CENVAT credit for the month of October, 2014. This resulted in a difference in the total availment of CENVAT credit for the period Octo....

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....7/2012-CE (NT) dated 18.06.2012 and Rule 5 of CENVAT Credit Rules, 2004 passed the following order:- "xxxx xxxx xxxx 8. .................................. As regard the issue that whether the proposal of the Revenue to reduce the cenvat credit utilize for payment of service tax on the domestic clearances of the services for the purpose of considering the net cenvat credit availed for the purpose of formula, I do not agree with the Revenue's proposal for the reason that as per Notification No. 27/2012- CE(NT) dt. 18.6.2012 in para 2(g) it provides as under: "2. Safeguards, conditions and limitations - Refund of CENVAT Credit under rule 5 of the said rules, shall be subjected to the following safeguards, conditions and limitations, namely:- (a)............... (b)................. (c)................. (d)................. (e)................. (f).................... (g) the amount of refund claimed shall not be more than the amount lying in balance at the end or quarter for which refund claim is being made or at the time of filing of the refund claim, whichever is less. (h)..................... (i).................... From the plain reading of the a....