2015 (6) TMI 377 - AT - Service Tax

Denial of refund claim - input services - Nexus with manufacturing activity - rent-a-cab service, air travel service and rent paid on office premises - Held that - All the three services, have nexus to the appellants activity. The rent-a-cab service has been used for providing transportation facility to the customers and air travel service has been used for travel of partners and employees of the company for business purposes and rent on office premises has been paid. Each action is directly connected to the business of manufacture. In view of the above, appellant is eligible for the refund claims. - refund allowed - Decided in favour of assessee.

Summary

The Appellate Tribunal CESTAT Bengaluru allowed the appeal of a 100% EOU for refund claims denied on the ground that clearances to 100% EOU cannot be considered as export. The Tribunal held that Cenvat credit and refund are admissible for services like rent-a-cab, air travel, and office premises rent, as they have a direct nexus to the appellant's manufacturing business activities. The appeals were allowed, granting consequential relief to the appellants.