2019 (5) TMI 1631 - AT - Service Tax

CENVAT Credit - input services - air travel agent service - membership of club association service - rent-a-cab service - HELD THAT - The definition of input service takes within its scope and ambit those services for consideration as input service. Thus, under the CENVAT provisions, the appellant should be entitled for benefit of refund of service tax paid on such input services - Credit allowed. CENVAT credit - input services - renting of immovable property service - denial on the ground that the services availed by the appellant are related to the electricity charges incurred on the rented premises - HELD THAT - Service provider providing the services to the appellant is registered with the Service Tax Department and paid the tax on such electricity charges under the taxable entry of renting of immovable property service. Since the department had not raised any objection on the service provider and accepted such tax as the appropriate tax due, the issue of levy of service tax on service cannot be questioned at the recipient s end inasmuch as the recipient of service is permitted to avail Cenvat credit of service tax paid on the taxable service by the service provider. Thus, denial of refund benefit on renting of immovable property service will not stand for judicial scrutiny. CENVAT Credit - duty paying documents - the debit notes issued by the service provider to the appellant - HELD THAT - The said note had contained the requisite particulars provided in Rule 4 (A) of Rules. Since payment of service tax by the service provider and receipt of services by the appellant for providing the output service have not been specifically alleged by the Department, the denial of refund benefit cannot be sustained on the ground that debit note is not a prescribed document for availment of CENVAT Credit. Appeal allowed - decided in favor of appellant.

Summary

Issues:
- Denial of refund benefit on certain input services under the Cenvat Credit Rules, 2004.

Analysis:
1. Issue of Refund Benefit Denial:
- The appellant, engaged in providing taxable services, claimed refund of service tax paid on input services related to investment advisory services provided to an associated company in Mauritius. The original Authority denied the refund benefit, stating the services did not conform to the definition of input service under the Cenvat Credit Rules, 2004.

2. Arguments Presented:
- The appellant's consultant argued that services like Air Travel Agent Service, Membership of Club or Association Service, Rent-a-Cab Service, and Renting of Immovable Property Service should qualify as input services for Cenvat Credit. The consultant provided detailed justifications for each service category.

3. Revenue's Position:
- The Revenue, represented by the Assistant Commissioner, reiterated the findings of the impugned order denying the refund benefit on certain input services.

4. Judgment Analysis:
- The Tribunal analyzed the disputed services and concluded that Air Travel Agent Service, Membership of Club or Association Service, and Rent-a-Cab Service fell within the scope of input services eligible for refund. Regarding Renting of Immovable Property Service, the Tribunal noted that the service provider had paid service tax on electricity charges, accepted by the Revenue, making the denial of refund benefit unjustified.

5. Debit Notes Examination:
- The Tribunal examined the debit notes issued by the service provider and found them compliant with Rule 4(A) of the Service Tax Rules, 1994. It emphasized that the denial of refund benefit based on the debit notes was not sustainable as the necessary particulars were provided.

6. Final Decision:
- After thorough analysis, the Tribunal found no merit in the impugned order denying the refund benefit to the appellant. Consequently, the appeal was allowed in favor of the appellant, granting the consequential benefit of refund.

This detailed judgment from the Appellate Tribunal CESTAT Mumbai highlights the legal intricacies surrounding the denial of refund benefits on specific input services under the Cenvat Credit Rules, 2004. The Tribunal's comprehensive analysis and decision provide clarity on the eligibility of various services for refund, ensuring fairness and adherence to legal provisions.