TaxTMI 
TaxTMI 
2021 (7) TMI 1089
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....he appellant is engaged in providing customer care and product support services in relation to Microsoft software products to the customers of the Microsoft located in India and abroad. Appellant provides these services through its Global Technical Support Centre (GTSC) located in Bangalore which is independently registered with the Service Tax authorities and is a 100% Export Oriented Unit under Software Technology Park of India scheme under the Foreign Trade Policy. The major portion of the appellant's turnover qualifies as export of services, it results in accumulation of CENVAT credit availed by it on various input services. Appellant has been regularly filing refund of such accumulated input tax credit under Rule 5 of the CENVAT Credit Rules, 2004. For the period, April 2010 to March 2011, a show-cause notice dated 14.10.2011 was issued to the appellant seeking denial of CENVAT credit availed by the appellant on the following input services. Sl. No. Description of service Amount (in Rupees) 1 Event Management 4,81,289 2 Outdoor catering 14,66,348 3 Mandap / Shamiana Service 8,456 4 Rent-a-cab Service 20,96,220 Total ....
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....iod i.e., October 2006 to March 2010, the appellant was issued a show-cause notice dated 11.10.2010 seeking denial of CENVAT credit of Rs. 1,42,21,280/-which inter alia included all the impugned services in the present appeal, in addition to construction of complex service. The said show-cause notice dated 11.10.2010 came to be adjudicated vide Order-in-Original dated 10.10.2012 by which the learned Commissioner as adjudicating authority was pleased to drop the entire proceedings under the show-cause notice dated 11.10.2010. He also submitted that since in the appellant's own case for the immediate preceding period on the very same impugned services, credit has been held to be eligible, then in the present case also, the said credit should be allowed. He further submitted that when the order of the Commissioner for the prior period allowing CENVAT credit was brought to the notice of the learned Commissioner in the present case, the Commissioner accepts that the department has accepted the said order but further clarified that such acceptance was not on merit but due to monetary limits. The learned counsel submitted that this observation of the learned Commissioner is factually inco....
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.....) 6. On the other hand, the learned AR reiterated the findings of the impugned order. 7. After considering the submissions of both the parties and perusal of the material on record, we find that the only issue involved in the present case is whether 'input services' in the nature of Event Management, Outdoor Catering, Mandap or Shamiana Service and Rent-a-Cab service qualify as eligible input services for the appellant to claim CENVAT credit during the relevant period. Further, we find that the appellant is a 100% Export Oriented Unit registered under Software Technology Park of India (STPI) scheme and has been availing input services for rendering its output services. Appellant has been claiming refund of accumulated tax credit under Rule 5 of CENVAT Credit Rules, 2004. In the present appeal, the CENVAT credit has been denied on four input services mainly on the ground that these impugned input services do not fall in the definition of 'input service' and there is no nexus between the input service and the output service and secondly, absence of such services will not directly have an impact on the quality and efficiency of provisions of taxable services. In this regard, it....
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....etings and seminars are conducted where large number of employees can be accommodated at once to enhance the business objective, these meetings and seminars are part of regular activity either to improve or deliver the services. Accordingly, such are input services in relation to business activities and are necessary for provision of output services by the company. (ii) Outdoor Catering Service - Such services procured for the purpose of provision of supply of food and beverages to the employees of the company. The same is towards the welfare of the employees. As there is no facility in the immediate vicinity where the employees can have their meals, services of such outdoor caterers are being utilized. Therefore, this cafeteria facility is essential for the employees to work and hence saves effective working time and allows for a consistency in the provision of food across to the employees. Hence, this facility is integral to running of the business. (iii) Pandal or Shamiana Service - Such services provided in relation to supply of furniture, fixtures, lights and light fittings is an essential requirement while conducting business or any meetings and is to benefi....