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2018 (6) TMI 1813 - AT - Service TaxRefund of CENVAT Credit - input services - nexus with the output services or not - HELD THAT - The appellant have described the nature of services and use thereof, it is prima facie found that in respect of all the services this Tribunal held that these subject services are input service, particularly in respect of identical placed assesse as appellant are engaged in providing output service which are exported. It is also observed that the lower authority denied the Cenvat credit/refund either on the basis of nexus or wanting of documentary evidence. The lower authority have not considered catena of judgments relied upon by the appellant. Thus, entire case has to be re-considered by verifying documents and analysis of judgments which are directly in respect of subject input services - the appeals are allowed by way of remand to the adjudicating authority to re-consider the issue of Cenvat credit as well as refund after considering the submissions made by the appellant.
Issues Involved:
1. Nexus between input services and output services for availing Cenvat credit. 2. Eligibility for refund of Cenvat credit under Rule 5 of Cenvat Credit Rules, 2004. 3. Adequacy of documentary evidence for claiming Cenvat credit. Detailed Analysis: 1. Nexus between Input Services and Output Services: The primary issue is whether the input services on which Cenvat credit was availed by the appellants have a nexus with the output services provided. The appellant argued that all disputed services were used in relation to the provision of output services and not for personal use. The services in question included transportation, business travel, event management, security charges, hotel stay, photography, custom house agent services, furniture repair, life insurance, air travel, office document storage, management maintenance, renting of immovable property, service tax on reverse charge, general insurance, facilitator/agent service charges, pest control, and courier services. The appellant provided a detailed chart explaining the use of each service and cited various judgments supporting their claim that these services qualify as input services. 2. Eligibility for Refund of Cenvat Credit: The appellant sought a refund of the Cenvat credit availed on the input services under Rule 5 of the Cenvat Credit Rules, 2004. The lower authority denied the credit/refund based on the lack of nexus and insufficient documentary evidence. The appellant contended that the services were essential for their business operations and directly related to providing output services, which were exported. They argued that the lower authority failed to consider the judgments that support their claim for Cenvat credit on the disputed services. 3. Adequacy of Documentary Evidence: The lower authority raised issues regarding the adequacy of documentary evidence provided by the appellant to substantiate their claim for Cenvat credit. The appellant countered this by stating that all necessary documents were produced, showing that the services were used for providing output services. They emphasized that procedural lapses, such as incomplete invoices or invoices not bearing the registered address, should not be grounds for denying credit if the substantive requirement of service use is met. The appellant also highlighted that they had notified the department of address changes promptly and that the invoices in question were valid for the relevant period. Conclusion: The Tribunal found that the appellant had made a prima facie case that the disputed services qualify as input services, particularly for assessees engaged in providing exported output services. The Tribunal noted that the lower authority had not adequately considered the judgments cited by the appellant. Consequently, the Tribunal allowed the appeals by way of remand, directing the adjudicating authority to re-consider the issue of Cenvat credit and refund after verifying the documents and analyzing the judgments cited by the appellant. Pronouncement: The judgment was pronounced in court on 7.6.2018, allowing the appeals by way of remand for re-consideration by the adjudicating authority.
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