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TMI Blog2015 (8) TMI 595X X X X Extracts X X X X X X X X Extracts X X X X ..... business of providing the output service would get covered. - credit allowed. Advertisement and Sponsorship Service - Department contends that the appellants being a software company engaged in export, these input services pertains to brand HCL which is widely known for hardware and therefore the appellants are not entitled to credit. - Held that:- appellant has nowhere stated in the reply that these input services were availed for promotion of hardware - the observation of the adjudicating authority is factually wrong - credit allowed. Out of pocket expenses - Held that:- The words out of pocket expenses is too wide and lacks definiteness as to the kind of service which would qualify to be an input service. - credit cannot be allowed without specification - credit denied. Visa and Immigration Services - pertaining to the spouse and daughter - Held that:- These services do not qualify to be input service to avail credit - credit denied. Rent-a-Cab Service - Held that:- According to appellants the service is used to pick up and drop the employees on daily basis so that they reach on time and these facilitate the output services. It has been settled in a series of jud ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anizing events 695878/- + 11011/- No nexus between the input service and output service provided. 5. VAT Registration of additional place 361/- It is not ascertainable from the invoice, the additional place which got registered. 6. Advertisement and Sponsorship Services 1849953/- It is for promotion of their brand and Brand HCL also which includes hardware as well. 7. Out of Pocket expenses 84905/- It has no nexus with provision of the output service. 8. Fee for Visa and immigration 26,050/- It is not eligible for spouse and daughter. 9. Maintenance of garden 11,872/- It has no nexus with provision of the output service. 10. Rent-a-cab service 22,751/- Service has been used prior to the relevant period (refund claim for the period Oct. 2011 to Dec. 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ctivity of manufacture when cleaning service are undertaken in the premises of the appellants Company. Therefore the view of the Department that it has no nexus with the output service exported is untenable. The credit on this score is allowed. 5. The services of Renting of equipments for organizing events and Event Management Service, was denied for the reason that the invoices suggest that these activities relate to parties, entertainment activities, corporate tournaments and that there is no nexus between the input services and the services exported. On behalf of the appellants it is submitted that such events were for promoting sales, for staff development and augmenting the business of the company. Appellants relied on the judgments in Toyota Kirloskar Motor Private Ltd. Vs. CCE., LTU. Bangalore 2011 (24) STR 645 (Kar.) and Endurance Technologies Pvt. Ltd. Vs. CCE., Aurangabad 2012 (32) STR 95 (Tri.-Mum.) in which cases the issue has been decided in favour of the assessee. The learned DR reiterated the findings of the Commissioner (Appeals) and submitted that there is no nexus for these activities with export activities of the appellant. The types of input services covered ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the benefit of advertisement services must be confined to HCL hardware alone, as the brand HCL is more popular for its hardware, and the appellants being a company engaged in software, is not entitled to the credit. Further the observation of the adjudicating authority that it is reflected from the written reply submitted by appellants is factually wrong. For these reasons I am of the view that appellants are entitled to the refund/credit of ₹ 18,49,953/- towards Advertisement and Sponsorship Services. 8. The appellants claim credit of ₹ 84,905/- as service tax paid on out of pocket expenses. According to appellants these out of pocket expenses/services makes part of taxable value of main services and the main service providers are Advertisement Agencies Professionals, Management Consultants and Chartered Accountants who have charged service tax from appellants on such out of pocket expenses. On behalf of the Revenue it was submitted that there is no relation between out of pocket expenses and the services exported to avail the benefit of Cenvat Credit. In this aspect I agree with the Departmental Representative. The words out of pocket expenses is too wide and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eling thus require place for their accommodation for which the above said service has been availed. It is observed by the authority below that the accommodation is availed for 3 to 7 days or for a maximum 30 days. This was denied on the ground that the same is used for onsite support and software implementation to the domestic customers and not overseas customers of the appellant and therefore it is not for providing output services. The appellant submitted that the output service exported is to be worked out and made ready in India itself, and thus services received within domestic terrain was for the business purpose of the appellant and not for any personal purposes. I cannot endorse the above submission of the appellants. The services for accommodation of employees in different places of the country in order to make ready the software for export cannot rule out the possibility of use of such services for personal purpose. On such score I am not inclined to allow the credit to these services. 13. In the result, the credit/refund of Sl. Nos. 5,7,8 and 11 which are Vat registration services, out of pocket expenses, Fee for Visa and immigration and charges for accommodation are ..... X X X X Extracts X X X X X X X X Extracts X X X X
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