TaxTMI 
TaxTMI 
2019 (12) TMI 557
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.... its various clauses, provides as follows:- "WHEREAS, from time to time, VML and/or its subsidiary companies namely Valentine Maritime (Gulf) LLC - VMGL, Valentine Maritime (Mauritius) Ltd. - VMML enter into contract and agreements with various client (hereinafter called "Client") to perform marine construction work in West Coast of India (hereinafter called "Territory"); and WHEREAS, VML and/or its subsidiary companies VMGL & VMML require the assistance of a qualified and experienced Indian Company to provide shipping and allied agency and support services (hereinafter called "Service") in order to discharge its obligation to its Client; and WHEREAS, ASL (appellant) is fully qualified, experienced and willing to supply such Service to VML on the terms and conditions set forth hereunder." 2. The agreement further provides that the appellant shall provide VML with the following services, among others, pursuant to receipt of specific request and authorisation from VML: "1.1 Meeting assistance as required for all designated personnel entering or leaving the territory; 1.2. Clearance assistance for all vessels and barges entering or depar....
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....eed percentage i.e. 5% or 10% as hereinabove stated on such incidental expenses procured as Pure Agent. In respect of such transaction, the appellant has paid service tax, on the service charges collected by them. With respect to such services procured from the other service providers, evidently, the providers of such services have charged service tax and they are registered with the Department. Further, the appellants received various input services like hotel service, Air Travel Services, Rent-a-Cab services etc., used by them for providing the output services to M/s. VML and others. In such cases, the invoice is in the name of the appellants. The appellants have paid service tax along with the charges to the service providers. Such amounts paid by the appellants, with respect to service procured for VML as Pure Agent, are reimbursed to the appellant. On such input services received by the appellants, the appellant availed cenvat credit benefit, as the same qualify as input services for them under Rule 2 (l) of CCR. The appellant has been of the belief that recovery of service tax by way of reimbursement from VML, would not have any bearing on the credit admissibility. 6. EA-2....
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....Rules, 2006. Further, the service tax on such procured services was discharged by the service providers, who had raised invoices on the appellant. The credit was availed on such invoices by the appellant. Objection of Revenue was that, the appellant was not entitled to cenvat credit of service tax paid, although the invoices were in their name but the services were procured as Pure Agent for VML. It was held that under the facts and circumstances, the appellant is not a 'Pure Agent' simplicitor but they are providing both output services on their own account and were also procuring services for VML as Pure Agent, wherein the appellants have incurred the cost and incidental expenses along with aggregate mark-up. It was also held that certain services provided by the appellant like restaurant, canteen, warehousing services, transportation services, etc., which are used by the appellant for rendering the output services, is not procured as Pure Agent on behalf of the VML. The issue framed is regarding the services on which the appellant have taken credit, are covered under the definition of "Input Services" as defined under Rule 2 (l) of CCR. It was held that the various services rece....
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....ejudice, the definition of 'input service' was very wide during the period 01.04.2010 to 31.03.2011 and any service used for providing output service would get covered under Rule 2(l). Be that as it may, there is no mathematical co-relation / direct nexus required to be established for availment of credit. See: Badrika Motors-. 14. Third, without prejudice, merely because the charges incurred on procurement of input services have been recovered from VML shall not affect the eligibility of credit. This fact has got nothing to do with eligibility of credit. 15. Fourth, without prejudice, the invoice of the input service provider bears the name of the appellants, the appellants have reimbursed service charges plus service tax thereon to the input service providers, the tax has been paid to the credit of the Central Government. In such facts and circumstances, it is incorrect to suggest / state that VML is the services recipient. Once it is an admitted and undisputed factual position that the service qualifies as an 'input service' for the appellants, there is no question of violation of Rule 3 of the Cenvat Credit Rules, 2004. 16. Fifth, there is also no allegation / finding ....
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....a manufacturer of excisable goods and the service must be in the nature of "input service" for such activity. 20. That reliance is also placed on the ruling of this Tribunal in the case of Rucha Engineers Pvt. Ltd. Vs. CCE, Aurangabad - 2015 (39) STR 518, wherein it is held that once the fact is that the service has suffered service tax, any payment towards duty or service tax is entitled for input credit and it is immaterial, who has paid service tax. 21. It is further urged that the appellant is the receiver of services provided by the appellant's service providers and not M/s VML. As per the terms of the agreement, the appellants are required to provide or meet assistance as required for all designated personnel entering or leaving the territory, clearance assistance for all vessels and barges entering or departing the territory, etc. Thus, the various services received like restaurant, canteen, rent-a-cab, services, etc., by no stretch of imagination, can be held that the such services are procured for or on behalf of VML. Such services are used by the appellant for providing their output services. 22. It is further urged that the appellant do not qualify as "Pure Agen....