2021 (7) TMI 731 - AT - Service Tax

Refund of Cenvat Credit - Air Travel Agency Services - Short-term Hotel Accommodation Services - Cleaning Services - Pest Control Services - Krishi Kalyan Cess - HELD THAT - Though, the authority below has denied the credit availed on these services alleging that these services have no nexus with the output services, the department has no case that the services were not availed by the appellants for the purpose of providing output services. As also, there is no evidence to establish that these services were used for personal consumption - From the documents furnished, it is convincing that these services have been availed by the appellants for export of their output services - Further, this issue is covered by the decision of the Tribunal in the appellant s own case M/S. MAERSK GLOBAL SERVICE CENTRES (INDIA) PVT. LTD. VERSUS COMMISSIONER OF G.S.T C.C.E, (CHENNAI OUTER) 2018 (7) TMI 1838 - CESTAT CHENNAI - the rejection or refund of credit on these services is unjustified. Short-term Hotel Accommodation Services are availed for the stay in hotel for attending workshop, seminars, meeting clients etc. - HELD THAT - This is clear from documents in the nature of Hotel Invoice, e-mail etc. It is established that these are not used for personal consumption - appellant has relied on the decision in the case of M/S. GE MONEY FINANCIAL SERVICES P. LTD. VERSUS COMMISSIONER OF SERVICE TAX, CHENNAI 2019 (5) TMI 1569 - CESTAT CHANDIGARH to argue that the said decision has held that the credit availed on Hotel Accommodation Services is eligible - refund of credit is to be allowed. Cleaning Services - HELD THAT - As these services are required to keep the premises of the appellants office in a clean and hygienic manner. So also, is the case with pest Control Services - the appellant is eligible for refund of credit on these two services. Krishi Kalyan Cess - HELD THAT - The learned counsel has fairly stated that the credit availed on Krishi Kalyan Cess is not eligible and that they are not contesting the same. The refund denied under this head is upheld. Appeal allowed in part.

Summary

Issues involved:
Refund claim under Cenvat Credit Rules, 2004 for various services like Air Travel Agency Services, Short-term Hotel Accommodation Services, Cleaning Services, Pest Control Services, and Krishi Kalyan Cess.

Analysis:

1. Refund Claim for Air Travel Agency Services:
The appellant argued that the Air Travel Agency Services were utilized for business purposes, such as meeting clients and attending workshops, with no evidence of personal consumption. The Tribunal previously allowed a similar issue in the appellant's favor. The rejection of credit on these services was deemed unjustified as they were availed for exporting output services.

2. Refund Claim for Short-term Hotel Accommodation Services:
The appellant demonstrated through documents like hotel invoices and emails that the Short-term Hotel Accommodation Services were solely for business-related stays, not personal use. Citing a precedent, the appellant contended that credit availed on such services should be eligible, leading to the decision to allow the refund.

3. Refund Claim for Cleaning Services:
The Cleaning Services were deemed essential for maintaining a clean and hygienic office environment, directly impacting the services exported. Similarly, Pest Control Services were necessary for a pest-free workplace. Consequently, the appellant was found eligible for a refund on both Cleaning and Pest Control Services.

4. Refund Claim for Krishi Kalyan Cess:
The appellant acknowledged that the credit availed on Krishi Kalyan Cess was not eligible and did not contest its denial. The decision to uphold the denial of refund under this category was supported.

5. Overall Decision:
After considering the arguments and evidence presented, the Tribunal concluded that the refund of credit availed on services, except Krishi Kalyan Cess, should be allowed. Appeal No. ST/40105/2020 was partly allowed with consequential reliefs, and Appeal No. ST/40104/2020 was fully allowed with consequential reliefs. The judgment was pronounced in open court, providing clarity on the refund claims for various services as per the detailed analysis and legal interpretations presented during the hearing.