2018 (6) TMI 250 - AT - Service Tax

Refund of CENVAT credit - various input services - exporter of services under the category of Business Support Services - case of Revenue is that post April 2014, the definition of input service has undergone a change which has deleted the services in relation to the business activity and is not to be considered as in or in relation to the business of the assessee - Held that - The argument on behalf of Revenue in the grounds of appeal is without any merits as similar / identical issue of various other appellants and respondents was considered by the Division Bench of this Tribunal in the case of Commissioner of Service Tax. V. WNS Global Services 2016 (10) TMI 135 - CESTAT MUMBAI and appeals were allowed in favor of assessee by holding that The claim of Revenue that input services do not have direct nexus to the business activity of respondent-asessee is a hollow claim - appeal dismissed - decided against Revenue.

Summary

Issues:
1. Stay petitions filed by Revenue for staying operations of the impugned order.
2. Denial of refund to the respondent in respect of CENVAT Credit availed on service tax paid on various input services.
3. Interpretation of the definition of 'input service' post April 2014.

Analysis:
1. The judgment addresses the stay petitions filed by Revenue to halt the impugned order's operations due to a refund being sanctioned by the first appellate authority. The Member (Judicial) finds the stay petitions devoid of merits after hearing both sides and disposes of them accordingly. The issue is considered in a narrow scope, leading to the disposal of the stay petitions.

2. The core issue revolves around the denial of refund to the respondent concerning CENVAT Credit on service tax paid for various input services from January 2012 to December 2014. The respondent, an exporter of 'Business Support Services,' availed CENVAT Credit for services such as Market Research Operations, Business Intelligence, and Competitive Intelligence Solutions provided to global organizations. The respondent's specialized services include market research operations, technology-related services, online retail services, and PriceTrac services for global clients, primarily in the USA, UK, and other countries. The adjudicating authority partially allowed the refund claims, leading to an appeal before the first appellate authority, which set aside the impugned order based on established legal precedents.

3. The judgment delves into the interpretation of the definition of 'input service' post April 2014, emphasizing Revenue's argument regarding the change in the definition affecting services related to business activities. However, the Member (Judicial) dismisses Revenue's argument, citing previous Tribunal decisions favoring the assessee in similar cases. Referring to cases like Commissioner of Service Tax v. WNS Global Services and Reliance Industries Ltd., where appeals were allowed in favor of the assessee, the Member upholds the correctness and legality of the impugned order without interference. Consequently, the appeals stand rejected based on the established legal principles and precedents cited in the judgment.