2017 (11) TMI 294 - AT - Service Tax

Refund of unutilized CENVAT credit - input services - manpower recruitment service - training services - security services - repair and maintenance services - Held that - all the services have been held to be input services by various decisions of the Tribunal and the High Courts - reliance placed in the case of M/s. Coca Cola India Pvt. Ltd. Versus The Commissioner of Central Excise Pune-III 2009 (8) TMI 50 - BOMBAY HIGH COURT Commissioner of Service Tax Vs. Jubilant Biosys Ltd. 2014 (7) TMI 1196 - CESTAT BANGALORE - refund allowed - appeal dismissed - decided against Revenue.

Summary

Issues:
- Whether the services of manpower recruitment, training, security, and repair and maintenance fall under the definition of input services for the purpose of claiming refund of unutilized CENVAT credit.
- Whether there is a nexus between the input services and the export services provided by the assessee.

Analysis:
1. The appeal was filed against the order passed by the Commissioner (A) allowing the refund claim of the assessee for certain services. The Revenue contended that these services, namely manpower recruitment, training, security, and repair and maintenance, do not qualify as input services.

2. The respondents, engaged in Business Auxiliary Services, filed a refund claim for unutilized CENVAT credit. The Deputy Commissioner partially sanctioned the refund but rejected a portion due to lack of nexus between input services and export services. The Commissioner (A) allowed the refund for the four services in question.

3. The Revenue argued that the impugned order did not consider the provisions of CENVAT credit and was in conflict with a specific notification. They claimed there was no nexus between the input services and export services.

4. The counsel for the respondent defended the impugned order, stating that the services were necessary for providing export services and were considered input services before a certain date when the definition was broadly interpreted by various courts.

5. After hearing both parties, the Tribunal found no issues with the impugned order. The Tribunal cited various decisions supporting the classification of the services as input services, including cases like Coca Cola India Pvt. Ltd. vs. CCE, Pune and M/s. Reliance Industries Ltd. vs. C. Ex. & ST, LTU, among others.

6. Consequently, the Tribunal upheld the impugned order, dismissing the appeal filed by the Revenue. The decision was based on the established nexus between the input services and the business activities of the assessee, as well as precedents from previous judgments.

7. The judgment was pronounced on 11/09/2017 by Shri S.S Garg, Judicial Member of the Appellate Tribunal CESTAT Bangalore, setting a precedent for future cases involving similar issues related to the classification of services as input services for claiming CENVAT credit refunds.