2018 (2) TMI 891 - AT - Central Excise

Refund of unutilized cenvat credit - CHA service - Manpower Recruitment and Supply Agency Service - denial on the premise that the services availed by the appellant were CHA, they have no nexus with the export of goods and Manpower Recruitment and Supply Agency Service have no nexus with the export of goods - Held that - on CHA Service, the said issue has been examined by this Tribunal in the case of Chandra Engineers Vs. CCE, Delhi 2014 (8) TMI 477 - CESTAT NEW DELHI , where it was held that If the bills of other agencies engaged by CHA are directly linked to the imports made by the assessee and CHA was only acting as a intermediary, the benefit of credit of service tax paid by the other agencies should not be denied to the appellant. Manpower Recruitment and Supply Agency Service - Held that - the said service has been availed by the appellant for manufacturing of the goods which has been exported and leave encashment have given to the employees which has been form part of the cost of goods exported - appellant is entitled to claim refund of the said amount. Appeal allowed - decided in favor of appellant.

Summary

Issues involved:
Refund claim under Rule 5 of Cenvat Credit Rules 2004 for unutilized cenvat credit; Nexus of services availed with export of goods; Manpower Recruitment and Supply Agency Service; Claim of refund for various services availed.

Refund Claim under Rule 5 of Cenvat Credit Rules 2004:
The appellant appealed against the order rejecting the refund claim for unutilized cenvat credit. The services availed, such as CHA and Manpower Recruitment and Supply Agency Service, were deemed to have no nexus with the export of goods. The Tribunal referred to a previous case where it was established that if the bills of other agencies engaged by CHA are directly linked to the imports made by the assessee, the credit of service tax should not be denied. The appellant demonstrated a nexus between the services of CHA and the shipping Bill No., leading to the entitlement to claim a refund of service tax paid on Clearing and Forwarding Agent Services.

Nexus of Services Availed with Export of Goods:
Regarding the nexus of services like CHA and Manpower Recruitment and Supply Agency Service with the export of goods, the Tribunal found that the CHA services were linked to the imports made by the appellant, allowing for the credit of service tax paid by other agencies. As for the Manpower Recruitment and Supply Agency Service, it was established that these services were utilized for manufacturing goods that were exported, justifying the claim for a refund. However, the appellant was not entitled to a refund for the portion of Catering Services where the amount was recovered from the employees. The Tribunal upheld the appellant's entitlement to claim a refund for Online Data Services and Advertisement service essential for the movement of exported goods.

Conclusion:
The Tribunal allowed the refund claim for Clearing and Forwarding Agency Services and Manpower Recruitment and Supply Agency Service, except for the portion related to Catering Services where the amount was recovered from the employees. Additionally, the appellant was granted a refund for Online Data Services and Advertisement service crucial for the export of goods. The appeals were disposed of accordingly, with the order being dictated in an open court on 23/10/2017.