9911796707
TMI Blog2015 (4) TMI 746X X X X Extracts X X X X X X X X Extracts X X X X ..... e India Pvt. Ltd (2011 (4) TMI 1122 - KARNATAKA HIGH COURT) followed - Decided in favour of assessee. - Appeal No. ST/59725/2013-ST (SM) - Final Order No. 50268/2015-ST (SM) - Dated:- 21-1-2015 - Ashok Jindal, Member (J),J. For the Appellant : Shri R K Sharma, Consultant For the Respondent : Shri D Singh, DR ORDER Per: Ashok Jindal: Appellant is in appeal against the impugned order rejecting there refund claim of ₹ 26,11,022/-. 2. The brief facts of the case are that the appellant is provider of output services and during the impugned period the appellant exported the services and filed the refund claim under Rule 5 of Cenvat Credit Rules, 2004 for the Cenvat Credit lying unutilized in their Cenvat Credit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or providing services namely Business auxiliary services, Consulting engineer services, Scientific and Technical consultancy services, Management Consultant, Business support services and Information Technology Software Services etc. The services availed by the appellant for which refund claim has been denied have no nexus with the output services provided by the appellant. Therefore, they are not entitled to claim refund on account of these services, He also relied on the CBEC circular dated 09.01.2010 to say that the appellant is required to show the nexus and they also needs to be sad in harmonious manner. Following test can be used to say whether sufficient nexus exist or not. Therefore she prayed that the appellant is not entitled to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orts. Accumulated credit and delayed sanction of refund causes cash flow problems for the exporters. Therefore, the sanctioning authorities are directed to dispose of the refund claims expeditiously bases on the following clarifications to the issues raised above. 3.1 Use of different phrases in rules and notification [para 2(a)]: 3.1.1 The primary objection indicated by the field formation is that the language of Notification No. 5/2006-C.E. (N.T.) permits refund only for such services that are used in providing output services. In other words, the view being taken is that to be eligible for refund, input services should be directly used in the output service exported. As regards, the extent of nexus between the inputs / input servic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecommunication facilities; etc. Further, in the instant example, services like outdoor catering or rent-a-cab for pick up and dropping of its employees to office would also be eligible for credit on account of the fact that these offices run on 24x7 basis and transportation and provision of food to the employees to ensure that output service is provided efficiently. Similarly, since BPOs/call Centres require a large manpower, service tax paid on manpower recruitment agency would also be eligible both for taking the credit and the refund thereof. On the other hand, activities like event management, such as company-sponsored dinners/picnics/tours, flower arrangements, mandap keepers, hydrant sprinkler systems (that is, services which can be c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arance of final products from the place of removal, And included services used in relation to setting up, modernization, renovation or repairs of a factory, premises of provider of output service or an office relating to such factory or premises, advertisement or sales promotion, market research, storage up to the place of removal, procurement of inputs, activities relating to business such as accounting, auditing, financing, recruitment and quality control, coaching and training, computer networking, credit rating, share registry, and security, inward transportation of inputs or capital goods and outward transportation up to the place of removal.' On true and fair construction of Rule 2(l), insofar as is relevant to the facts on han ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
