2017 (5) TMI 1348 - AT - Service Tax

Refund of CENVAT credit - real estate agent services - technical testing and analysis services - denial on account of nexus - Held that - with regard to the real estate agent services as well as technical testing and analysis services, both the services fall in the definition of input service and both the services are related with the business activities of the company - refund allowed. Advertisement service - cargo handling service - Held that - there is no finding given by the learned Commissioner (A), therefore case remanded to the learned Commissioner (A) with a direction to pass reasoned order with regard to these two input services - matter on remand. Appeal allowed by way of remand.

Summary

Issues: Refund of CENVAT credit for real estate agent service, technical testing and analysis service, advertisement services, and cargo handling services.

Refund of CENVAT Credit for Real Estate Agent Service and Technical Testing and Analysis Service:
The appellant, a subsidiary of a US corporation, filed a refund claim for CENVAT credit on input services like real estate agent services and technical testing and analysis services. The Commissioner (A) rejected the refund claim citing lack of nexus between the input and output services. The appellant argued that these services were essential for its business activities and fell within the definition of input services. The Tribunal agreed with the appellant, citing precedents and held that both services qualified as input services related to the business activities. The refund claim for these services was allowed.

Refund of CENVAT Credit for Advertisement Services and Cargo Handling Services:
The appellant also claimed a refund for input services related to advertisement and cargo handling, but the Commissioner (A) did not provide any findings on these services in the impugned order. The appellant argued that advertisement services and cargo handling services were essential for their business and qualified for CENVAT credit. The Tribunal, after considering the submissions and case laws cited, remanded the case back to the Commissioner (A) to pass a reasoned order specifically addressing these two input services. The Tribunal directed the Commissioner (A) to consider the various decisions cited by the appellant before making a decision on the refund claim for advertisement and cargo handling services.

In conclusion, the Tribunal allowed the appeal by remanding the case back to the Commissioner (A) for a reasoned decision on the refund claims for advertisement and cargo handling services, while granting the refund for real estate agent service and technical testing and analysis service based on their essential nature for the business activities.