2015 (12) TMI 953 - AT - Service Tax

Denial of refund claim - Unutilized CENVAT Credit - Various service - Held that - all the services in dispute are covered by the decisions relied upon by the respondent and I find myself in agreement with it and therefore the appeal filed by the Revenue has no merit. - Decided against Revenue.

Summary

Issues: Appeal against sanction of refund of unutilized CENVAT credit for various charges and services for 2008-09.

Analysis:
1. Refund of Unutilized CENVAT Credit: The respondent claimed and received a refund of unutilized CENVAT credit for 2008-09, totaling Rs. 40,32,513. The credit comprised various charges such as analysis charges, calibration charges, cell phone charges, clearing charges, courier charges, internal audit fee, IT consultancy, labour charges, office maintenance charges, professional and consultancy charges, repairs & maintenance, security charges, staff training, and transportation charges.

2. Revenue's Appeal: The Revenue appealed against the sanction of the refund, challenging the eligibility of the input services for claiming the CENVAT credit refund.

3. Legal Precedents: The respondent relied on several case laws to support their claim. These included the case of Comr. of Customs & Central Excise, Hyderabad IV v. Deloitte Tax Service India (P.) Ltd., where the AP High Court held that various services like equipment hiring, professional consultation, recruitment, security, telephone, transport, training, and other services were eligible for credit under rule 5 of Cenvat Credit Rules, 2004.

4. Judicial Decisions: The respondent also cited the case of Comr. of Customs v. Vishal Natural Food Products Bangalore, where it was held that tax paid on input services like telephone, professional charges, courier charges, commission paid, clearance & forwarding charges, and transportation charges were refundable. The decision was based on previous rulings upheld by the Karnataka High Court and the Supreme Court.

5. Nexus with Manufacturing Process: The respondent argued that legal obligations or input services directly related to manufacturing or business activities, or expenses indirectly promoting business efficiency, were eligible for credit. Various court decisions were cited to support this argument, emphasizing the broad interpretation of activities relating to business.

6. Operative Order: The Tribunal, after considering the submissions and legal precedents, found that all services in dispute were covered by the decisions relied upon by the respondent. Consequently, the appeal filed by the Revenue was deemed to have no merit, and it was rejected.

This detailed analysis of the judgment highlights the key issues, legal arguments, case laws, and the final decision rendered by the Appellate Tribunal CESTAT Bengaluru regarding the appeal against the sanction of the refund of unutilized CENVAT credit for various charges and services for the financial year 2008-09.