2017 (3) TMI 305 - AT - Service Tax

100% EOU - refund claim - various input services - denial on account of nexus - Held that - The input services other than club / association services have been analysed by this Tribunal in various judgments and the Tribunal has held that the appellant is eligible for refund - refund allowed for all services except club / association services - appeal allowed - decided partly in favor of appellant.

Summary

Issues:
Appeal against rejection of refund for various services.

Analysis:
The appellants, engaged in Consulting Engineer Services and Information Technology Software Services exported outside India, filed a refund claim for unutilised CENVAT credit of service tax paid on input services amounting to ?70,56,816 for the period October 2012 to December 2012. After adjudication, a refund was granted except for ?7,17,213. The appeal was against the rejection of refund for this amount.

The appellant's consultant explained the services and their nexus with the output services. It was acknowledged that the appellant was not eligible for refund of service tax paid for club/association service for recreation purposes amounting to ?6,729. The Tribunal analyzed previous judgments and the appellant's own case, holding that the appellant is eligible for refund of the disputed amount. The rejection of refund to the tune of ?7,10,484 was set aside, and the appellant was deemed eligible for the refund. The appeal was partly allowed with consequential reliefs.

In conclusion, the Tribunal allowed the appeal against the rejection of refund for various services, setting aside the disallowance of credit/refund amounting to ?7,10,484 and holding the appellant eligible for the refund.