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2018 (6) TMI 1813
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....ous judgments wherein all the subject services were allowed as input service. He submits that lower authority also raised the issue that documentary evidences were not produced. He submits that all the documents were produced by which from which it can be seen that service were used for providing output service. 3. On the other hand, Shri. M.P. Damle, Ld. Asstt. Commissioner(A.R.) appearing on behalf of the Revenue reiterates the findings of the impugned order. 4. I have carefully considered the submissions made by both sides and perused the records. 5. In order to understand the nature of input services, use thereof and admissibility for cenvat, the chart produced by the appellant is for assistance to arrive at concusion of the case. The said detailed chart submitted by the Ld. Counsel is reproduced below: Sl.No Heads of Service ST/85387/2018 ST/85386/2018 ST/85382/2018 Total Issue / Basis for denying CENVAT Credit Submission Case laws relied upon by Appellant (page no. of compilation) 2005 to 2012 Order-in-Original No.47/ST-II/Dn Vi/Addl./SN/13-14 2012 to 2014 Order-in-Original 06 to 07/JM(AC)/DIVV/ ST-VII....
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....o. 41-48 of the compilation] 5. KLA Tencor Software India Pvt. Ltd. (Tri- Chennai) [ pg no. 53 to 56 of the compilation] 6. Essar Oil (HC- Gujarat) [pg no.62 to 63 of the compilation] 3 Event management/Banqu et Services/Mandap Keeper Services 91,894 - 8,281 1,00,175 1. Credit has been denied stating that services of event management do not affect the efficiency of providing the output service 2. Board Circular of 2010 cited / relied upon In a service industry, like that of the Appellant, human resources are the most important aspect, and these services are used for conducting seminars of knowledge updation, discuss global trends and developments in business, as also for team building activity, workshops, meetings, etc. Hence, these services are directly "used in" providing the output service of the Appellant and CENVAT Credit is admissible 1. J.P. Morgan Services (I) Pvt. Ltd. (Tri- Mumbai) [ pg no. 49 to 52 of the compilation] 2. Accenture Services Pvt. Ltd. (Tri- Mumbai) [ pg no. 37 to 40 of the compliation] 3. Dell International Services India Private Limited (Tri- Bangalore) [ pg no. 57 to 61 o....
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....d in definition (Judgment of Guj HC Cadilla Healthcare cited) These services are procured for: (a) ID cards (b) events held for official purposes both of which are necessary for operation of business Services falls within main limb of definition of input service and hence CENVAT Credit should be allowed 1. Sundaram Clayton Ltd. (Tri- Chennai) [ pg no. 70 to 73 of the compilation] 2. Accenture Services Pvt. Ltd. (Tri- Mumbai) [ pg no. 37 to 40 of the compilation] 7 Custom House Agent Services 28,808 - - 28,808 Credit has been denied stating there is no nexus of this service with the output service and fact of, and details of import goods not explained to enjoy CHA services credit 1. Services are used for clearing imported assets, which are to be used to provide output services (telephony equipment used for business) 2. There is no legal requirement to mention or disclose goods imported and this is a frivolous test to deny credit 1. WNS Global Services (Tri- Mumbai) [ pg no.33 to 36 of the compilation] 2. Sundaram Clayton Ltd. (Tri- Chennai) [ pg no. 70 to 73 of the compilation 8 ....
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....4-15, dated 04.08.2014 July 2013 to December 2013 for the OIO NO. 185- 186-R/GCJ/15-16, dated 26.06.2015 1 Air travel Charges/Travel Agent Services 10,812 4,442 56,374 71,628 1. Credit has been denied as : a. Nexus with output service not shown and b. Personal consumption is not ruled out 2. Commissioner has relied upon the judgment in case of Vikram Ispat (Tri) to disallow Credit 1. These services are used for travelling of employees between the two branches of the appellant when on official duty 2. Judgment in case of Vikram Ispat (Tri) should not be relied as (a) it is contrary to numerous Division Bench judgments like Accenture (Tri) and WNS Global (Tri), (b)is pending appeal in HC and (c) no documents / details given 1. Axis Bank Ltd. (Tri- Mumbai) [ pg no. 121 to 125 of the compilation] 2. WNS Global Services (Tri- Mumbai ) [ pg no.33 to 36 of the compilation] 3. Accenture Services Pvt. Ltd. (Tri- Mumbai) [ pg no.37 to 40 of the compilation] 4. Integra Software Services Pvt. Ltd. (Tri- Chennai) [ pg no. 41 to 48 of the compilation] 5. KLA Tencor Software India Pvt....
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....ect the efficiency of output service 1. Use of air-conditioners is an indispensable condition for conduct of business, especially considering the appellant is providing back-office services 1. KLA Tencor Software India Pvt. Ltd.(Tri- Chennai) [ pg no. 53 to 56 of the compilation] 2. Hindustan Petroleum Corpn. Ltd. (Tri- Hyd) [ pg no. 78 to 81 of the compilation 6 Renting of immovable property services (CAM charges) 4,02,416 1,53,520 4,54,999 10,10,935 Relied upon the judgment in case of Knoah Solutions (Tri) to disallow credit 1. CAM charges a part and parcel of rent agreement and cannot be isolated 2. Judgment cited in OiA viz Knoah Solutions (Tri) is not applicable in the present facts. In Knoah Solutions (Tri) the issue was sent for de novo verification and no finding was given on merits 3. Judgment in Knoah Solutions (Tri) is not applicable in this case, specifically in light of the judgment passed by the same Hon'ble member in the case of Marathon Electric (Tri 1. Marathon Electric India Pvt. Ltd. (Tri- Hyd) [ pg no.82 to 84 of the of the compilation 7 Service tax on reverse cha....
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....ice', hence, credit is admissible 2. Providing security to employees and office assets is an indispensable condition for any business Convergys India Pvt. Ltd. (Tri-Del) [pg no. 15 to 16 of the compilation] 11 De bonding of capital goods - - 803 803 Credit disallowed stating there is not nexus with the output service 1. These services are of CHA and were used for de-bonding of office assets. The exit of STPI status was for commercial purposes. (Semco Electrical - Tri) 1. WNS Global Services (Tri- Mumbai) [ pg no.33 to 36 of the compilation] 2. Sundaram Clayton Ltd. (Tri- Chennai) [pg no. 70 to 73 of the compilation 12 Facilitator/Agent service charge - - 35,518 35,518 Credit disallowed stating there is not nexus with the output service These services are of security charges and falls squarely in the inclusive part of the definition of 'input service'. Therefore, credit cannot be denied Convergys India Pvt. Ltd. (Tri-Del)[pg no. 15 to 16 of the compilation] 13 Pest Control services - - 1,681 1,681 1. Nexus....
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.... R/DB/15-16, dated 27.08.2015 October 2014 to March 2015 for OIO NO. 582 & 583-R/DB/15-16/, dated 09.12.2015 April 2015 to June 2015 for the OIO NO. 761-R/DB/15- 16/, dated 04.02.2016 July 2015 to March 2016 for OIO NO. 266/267/268-R/AD/16- 17, dated 06.10.2016 1 Air travel agent service 23,878 24,667 23,360 96,448 - 1,68,353 1. Credit has been denied as : a. Nexus with output service not shown and b. Personal consumption is not ruled out 2. Commissioner has relied upon the judgment in case of Vikram Ispat (Tri) to disallow credit 1. These services are used for travelling of employees between the two branches of the appellant when on official duty 2. Judgment in case of Vikram Ispat (Tri) should not be relied as (a) it is contrary to numerous Division Bench judgments like Accenture (Tri) and WNS Global (Tri), (b)is pending appeal in HC and (c) no documents / details Given 1. Axis Bank LTD (Tri- Mumbai) [ pg no. 121 to 125 of the compilation] 2. WNS Global Services (Tri- Mumbai ) [ pg no.33 to 36 of the compilation] 3. Accenture Services Pvt. Ltd. (Tri- Mumbai) [ p....
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....3 Credit disallowed for AMC of air-conditioners/office equipment/UPS as: 1. Documentary evidence 2. air-conditioners, etc do not affect the efficiency of output service 1. Use of air-conditioners is an indispensable condition for conduct of business, especially considering the appellant is providing backoffice services 1. KLA Tencor Software India Pvt. Ltd.(Tri- Chennai) [ pg no. 53 to 56 of the compilation] 2. Hindustan Petroleum Corpn. Ltd. (Tri- Hyd) [ pg no. 78 to 81 of the compilation] 6 Renting of immovable property (CAM) - 9,60,046 7,52,570 4,13,929 5 21,26,550 Relied upon the judgment in case of Knoah Solutions (Tri) to disallow credit 1. CAM charges a part and parcel of rent agreement and cannot be isolated 2. Judgment cited in OiA viz Knoah Solutions (Tri) is not applicable in the present facts. In Knoah Solutions (Tri) the issue was sent for de novo verification and no finding was given on merits 3. Judgment in Knoah Solutions (Tri) is not applicable in this case, specifically in light of the judgment passed by the same Hon'ble member in the case of Marathon El....
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....pg no. 57 to 61 of the compilation] 4. WNS Global Services (Tri- Mumbai) [ pg no.33 to 36 of the compilation] 5. Oceans Connect India Pvt. Ltd. (Tri- Mumbai) [ pg no. 67 to 69 of the compilation] 11 Courier Services 1,222 1,287 1,172 1,498 2,449 7,628 1. Nexus with output service or how efficiency to provide output service is impacted in absence of service (electronic upload suggested) S=Sending and receiving documents is an integral part of conducting any business, and most important for effectively providing output service 1. KLA Tencor Software India Pvt. Ltd. (Tri- Chennai) [ pg no. 53 to 56 of the compilation] 2. Convergys India Pvt. Ltd. (Tri- Delhi) [pg no. 15 to 16 of the compilation] 3. Sundaram Clayton Ltd. (Tri- Chennai) [pg no. 70 to 73 of the Compilation 12 Business support services 1,39,174 1,607 60,511 20,929 - 2,22,221 Documents not submitted Verification of documents to be undertaken 13 Various other services (para 8.18 of OIA - 10,576 46,190 80,419 33,209 1....