2017 (8) TMI 707 - AT - Service Tax

EOU - stay of order of Refund of unutilised CENVAT credit - input services - Outward Catering Services - Rent-a-Cab Services - Parking Charges - Air Travel Agency Services - Restaurant Service - Photography Service - Held that - The issue whether assessee is eligible for refund/credit on input services like Outward Catering Services, Rent-a-Cab Services, Parking Charges, Air Travel Agency Services, Restaurant Service and Photography Service prior to the period 01.04.2011 has been settled by various judgments - The definition of Input Services prior to the period had a wide ambit as it included the words activities related to business - there is no ground to grant stay of the impugned order - appeal dismissed - decided against Revenue.

Summary

Issues:
- Stay of execution of the Order-in-Appeal allowing refund claim under Rule 5 of Cenvat Credit Rules, 2004.
- Eligibility of the assessee for refund/credit on input services prior to 01.04.2011.
- Credit availed on invoices issued for unregistered premises.
- Delay in granting refund by the department.

Analysis:
1. Stay of Execution:
The department filed applications seeking a stay of execution of the Order-in-Appeal which granted refund claims under Rule 5 of Cenvat Credit Rules, 2004. The respondent, an Export Oriented Unit, had filed refund claims for unutilized Cenvat Credit for different periods. The original authority partially granted the refund, and the respondents appealed before the Commissioner (Appeals) who allowed the appeals. The department contended that the nexus of various input services had not been established by the appellants, and credit had been availed on invoices received by their unregistered premises. However, the Tribunal dismissed the stay applications, citing settled legal principles and lack of grounds to grant a stay.

2. Eligibility for Refund/Credit on Input Services:
The issue of whether the assessee is eligible for refund/credit on input services like Outward Catering Services, Rent-a-Cab Services, Parking Charges, Air Travel Agency Services, Restaurant Service, and Photography Service prior to 01.04.2011 was discussed. The Tribunal noted that the definition of "Input Services" before this period had a broad scope, including "activities related to business." Various judgments had settled this issue, establishing the eligibility of the assessee for such refunds. The Tribunal also referred to a decision by the High Court of Madras regarding credit availed on invoices issued for registered premises, further supporting the assessee's position.

3. Credit Availed on Invoices for Unregistered Premises:
The department raised concerns about credit being availed on invoices received by unregistered premises. The respondent argued that this issue had been settled by previous decisions, including a specific case reference. The Tribunal acknowledged these legal precedents and found no grounds to grant a stay based on this argument.

4. Delay in Granting Refund:
The respondent highlighted the delay in granting the refund by the department, emphasizing that the period in question dated back to 2008. The Tribunal considered this delay and the settled legal principles regarding the eligibility of the assessee for the refund, ultimately dismissing the stay applications and directing the cases for regular hearing in due course.

In conclusion, the Tribunal's judgment addressed the stay applications, eligibility of the assessee for refund/credit on input services, credit availed on invoices for unregistered premises, and the delay in granting the refund. The decision was based on established legal principles and precedents, ultimately leading to the dismissal of the stay applications.