TaxTMI 
TaxTMI 
2023 (9) TMI 1100
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.... of their output service. After due process of law, the original authority sanctioned certain amount and rejected the refund in respect of certain services. Against this, the assessee filed an appeal before the Commissioner (Appeals) who sanctioned refund of Rs.56,24,820/-. The Department has filed the appeal against sanction of Rs.56,24,820/- and the assessee has filed appeal against the rejection of Rs.2,79,52,371/- by the Commissioner (Appeals). 3.1 The Ld. Consultant Shri K. Sivarajan appeared for the assessee. It is explained that the assessee is engaged in export of Information Technology Services and they had three units which have centralized registration at Chennai, Hyderabad and Bangalore. Apart from export of services, the assessee was also providing output service of renting of immovable property service. This was the only domestic output service rendered by the assessee. The assessee had also been registered as recipient of services for the payment of Service Tax in the nature of Management and Business Consultant Services, Manpower Recruitment and Supply Agency Services under reverse charge mechanism. The only domestic turnover of the assessee is with regard to renti....
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.... management services, travel agent services and supply of tangible goods services alleging that these services have no nexus with the output services provided by the assessee. The Ld. Consultant submitted that the period involved is prior to 01.04.2011 during which period, the definition of input services had a wide ambit as it included the words 'activities relating to business'. For the different period in the assessee's own cases, the Commissioner (Appeals) has allowed the refund in respect of the very same services. The authorities below have relied upon the decision in the case of Commissioner of Central Excise, Nagpur Vs. Manikgarh Cement Works [2010 (18) STR 275 (Tri. Mumbai)] which in turn has relied upon the judgment of the Hon'ble Supreme Court in the case of Maruti Suzuki Ltd. Vs. Commissioner of Central Excise, Delhi-III [2009 (240) ELT 641 (SC)]. It is explained by the Ld. Consultant that the decision in the case of Maruti Suzuki Ltd. (supra) was rendered in regard to inputs and not input services. The Larger Bench of the Tribunal in the case M/s. Reliance Industries Ltd. vs. Commissioner of Central Excise and Service Tax (LTU), Mumbai [2022 (60) GSTL 442 (Tri.-LB)] ha....
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....s with the output services provided by the assessee. 4.4 The Commissioner (Appeals) has allowed an amount of Rs.7,19,638/-. The Ld. Consultant for the assessee has explained the contentions in regard to an amount of Rs.7,19,638/- which is discussed in paragraph 9(vii) of the order passed by the Commissioner (Appeals) vide Order-in-Appeal Nos. 132-134/2014 dated 14.03.2014. It is submitted by the Ld. Authorised Representative that the original authority had disallowed the refund of this amount whereas the Commissioner (Appeals) has allowed the same observing that the exports being continuously done, the claim cannot be rejected. The Ld. AR argued that the assessee is not eligible for refund of this amount. The Ld. Consultant on behalf of assessee countered this submission made by the Ld. AR adverting to the final order in the assessee's own case F.O.No. 40299-40309/2022 dated 24.08.2022 wherein in paragraph 8, the Tribunal had observed that it is not required to have one to one correlation with the exports and the input credit availed. 4.5 The Ld. AR prayed that the assessee appeal may be dismissed, the Department appeal may be allowed. 5. Heard both sides. 6.1 The Ld. Consultan....
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.... in the formula for calculating the eligible credit, the authorities below have applied the figures in relation to Manpower Recruitment and Supply Agency Services. The ST-3 Returns filed by the assessee have been produced along with the appeal paper book. It is seen that the assessee is discharging Service Tax under Manpower Recruitment and Supply Agency Services as the recipient of service under reverse charge mechanism. This cannot be considered as the domestic turnover. While applying the formula, the output service provided by the assessee in the domestic area has to be considered. The quantum of domestic turnover in regard to renting of immovable property would be only Rs.39,85,984/-. On the basis of records, this issue is found to be in favor of the assessee and against the Department. However, the same requires to be remanded to the original authority for recalculation by applying the correct domestic turnover. 6.5 The third issue is the rejection of refund in respect of various services alleging that these services have no nexus with the output services provided by the assessee. The period involved is prior to 01.04.2011 when the definition of services included the phrase ....