2018 (6) TMI 329 - AT - Service Tax

Refund of CENVAT credit - various input services - rejection on the ground that appellant has not justified that these services are used for rendering of output services which are exported - Held that - Appellants are providing Data Processing Consultancy Services which are exported by availing CENVAT Credit of the service tax paid on the services - there is no dispute as to the fact that all the services were received and utilized by the appellant during the course of rendering output services which are exported. Export of insurance service and the amount involved therein as credit of service tax paid by the service provider of the services would fall under the category of services which are used for providing output services by the appellant and exported - As regards the service tax credit on the insurance services, maintenance and repair services, it is found that the said services in respect of individuals are not allowed accordingly to that extent, impugned orders are upheld. Appeal allowed in part.

Summary

Issues:
Refund of CENVAT Credit on various services for exported output services.

Analysis:

The judgment pertains to five appeals challenging the rejection of a refund claim of CENVAT Credit availed on services like Cleaning/Housekeeping, Maintenance & Repair, Insurance, Hotel & Accommodation, Telecommunication, Consultancy, and Renting of Immovable Property. Both lower authorities had denied the refund claim, stating the appellant failed to justify the use of these services for rendering exported output services.

Upon review, it was established that the appellant provides Data Processing Consultancy Services that are exported using CENVAT Credit from the aforementioned services. The records confirm that all the services in question were indeed received and utilized during the provision of output services meant for export. The judgment relied on a precedent (Robert Bosch Engineering & Business Solutions Ltd. v. Commissioner of Central Excise, Cus. & ST) to support the position that services like insurance, used for providing output services and subsequently exported, qualify for credit on service tax paid.

However, concerning service tax credit on insurance services and maintenance and repair services for individuals, it was noted that such services are not permitted. As a result, the impugned orders rejecting the credit on these specific services were upheld, leading to the disposal of the appeals accordingly.