2017 (7) TMI 1037 - AT - Service Tax

Refund of unutilised CENVAT credit - Scientific and Technical Consultancy Services - Held that - the learned Commissioner (Appeals) has wrongly rejected the refund of cenvat credit on Scientific and Technical Consultancy Services without any basis by wrongly holding that the said service is not an input service - this service is very much part of the input service and it is directly linked with the output service of the company - appeal allowed - decided in favor of appellant.

Summary

Issues:
Refund denial on 'Scientific and Technical Consultancy Service' for export output services.

Analysis:
The appeal was against the denial of refund on 'Scientific and Technical Consultancy Service' for export output services. The Commissioner (Appeals) allowed the refund on most input services but disallowed it on this particular service. The appellant argued that the service was essential and directly related to designing automobiles, the company's output service. The counsel cited various decisions to support the claim. Additionally, the Tribunal had previously allowed the refund on the same service in the appellant's case. After considering the arguments and precedents, the Judicial Member found that the Commissioner (Appeals) wrongly rejected the refund without a valid basis. The service in question was deemed an 'input service' directly linked to the company's output service. Consequently, the impugned order was set aside, and the appeal was allowed.

In conclusion, the judgment addressed the issue of refund denial on 'Scientific and Technical Consultancy Service' for export output services. The appellant successfully argued that the service was essential and directly related to the company's output service, citing relevant legal precedents. The Judicial Member found that the Commissioner (Appeals) erred in rejecting the refund without a valid basis, especially considering the Tribunal's previous decision in the appellant's favor. As a result, the impugned order was overturned, and the appeal was allowed, granting the refund on the disputed service.