2017 (2) TMI 488 - AT - Service Tax

Refund claim - Rule 5 of CCR, read with N/N. 5/2006 - CE (N.T.) dated 14.03.2006 - Held that - The Tribunal in the appellants own case for a different period M/s. Virtusa (India) Pvt. Ltd. Versus CC, CE&ST, Hyderabad 2016 (6) TMI 678 - CESTAT HYDERABAD , had analyzed the issue in detail the nexus of these services with regard to output services of appellant and had held that the appellant is eligible for refund - appellant eligible for refund - appeal allowed - decided in favor of appellant.

Summary

Issues:
- Rejection of refund claim for unutilized credit under Rule 5 of CENVAT Credit Rules.
- Disputed services under "Renting of Immovable Property," "Supply of Tangible goods services," etc.
- Tribunal's analysis of nexus of disputed services with output services for refund eligibility.

Analysis:
1. The appeals were filed against the rejection of a refund claim by the appellants, who provide taxable services under "Information Technology Software Services." The refund claim was made for unutilized credit under Rule 5 of CENVAT Credit Rules, along with Notification No. 5/2006 - CE (N.T.) dated 14.03.2006. The details of the refund claim, rejected amount, and the period involved were presented in a tabulated format.

2. The appellant's counsel argued that the period in question predates 01.04.2011, and previous Tribunal orders for a different period had allowed credit for similar disputed services. On the other hand, the Department's representative defended the findings in the impugned order.

3. The disputed services included "Renting of Immovable Property," "Supply of Tangible goods services," "Management, Maintenance and Repair Services," among others. The Tribunal referred to its previous orders where it had analyzed the nexus of these services with the appellant's output services and concluded that the appellant was eligible for a refund. Relying on its earlier decisions, the Tribunal held that the appellant is indeed eligible for the refund, setting aside the impugned order and allowing the appeals with any consequential reliefs.

4. The Tribunal's decision was based on a detailed analysis of the nexus between the disputed services and the appellant's output services, following its earlier rulings on similar issues. The judgment highlighted the importance of consistency in applying legal principles and precedents to determine the eligibility for refunds in such cases. The ruling serves as a precedent for future cases involving similar refund claims under the CENVAT Credit Rules.