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TMI Blog2016 (6) TMI 679X X X X Extracts X X X X X X X X Extracts X X X X ..... s split as rent amount for premises and common area maintenance charges. Both these fall within the main category of renting of immovable property. Undisputedly the issue has been reconsidered in the de novo proceedings. Hence the claim in this regard is held to be inadmissible. Appellant is eligible for refund in regard to services except common area maintenance charge - Decided partly in favor of assessee. - Appeal No. ST/27095/2013 - Final Order No. A/30274/2016 - Dated:- 26-4-2016 - Ms. Sulekha Beevi, C.S., Member ( Judicial ) Shri Sudhir, V.S., Consultant for the appellant Shri D.S. Maan, Authorised representative for the respondent ORDER [Order per: Sulekha Beevi, C.S.] The appeal is filed challenging the rejection of refund claimed under Rule 5 of CENVAT Credit Rules read with Notification No.5/2006-CE(NT) dt. 14/03/2006. 2. The appellants are engaged in rendering Business Processing Outsourcing (BPO) / call centre services through voice, chat and E-mail channels using Internet and Broad Band facilities to the end customers of their client (Knoah Solution Inc. USA) located in United States of America. They availed various input services for pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er(Appeals) has rejected the refund on all services except the service of renting of immovable property . The ground for rejection is that the input services do not have direct nexus in providing output service. The main judgment relied by the Commissioner(Appeals) is the decision of the Hon ble Apex Court rendered in Maruti Suzuki Ltd. Vs. CCE, Delhi-III [2009(240) ELT 641 (SC)]. In the said case, the Hon ble Court discussed the admissibility of credit on inputs. The learned counsel for appellant argued that the level of nexus required in the case of input service is lower than that of inputs. Further the said view was referred to Larger Bench of Supreme Court and by judgment rendered in the case of Ramala Sahkari Chini Mills Ltd., UP Vs. CCE, Meerut-I [2016-TIOL-20-SC-CX-LB], the Hon ble Larger Bench of Apex Court has held that the word includes does not have a restrictive meaning. At this juncture, it needs to be stated that in the case of CST, Delhi Vs. Convergys India (P) Ltd. reported in 2009-TIOL-888-CESTAT-Delhi, it was held that there cannot be two different yardsticks, one for permitting credit and the other for granting eligibility of refund. The Circular No.120/01/2010- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e as capital goods; or (C) such as those provided in relation to outdoor catering, beauty treatment, health services, cosmetic and plastic surgery, membership of a club, health and fitness centre, life insurance, health insurance and travel benefits extended to employees on vacation such as Leave or Home Travel Concession, when such services are used primarily for personal use or consumption of any employee. 1) Manpower Recruitment / Supply agency service: (Rs.92,123/-) These services were availed for hiring employees who work for execution of the output services. It is submitted that these services assist the appellant in selecting manpower required for prospective employment, till the stage of actual selection and appointment. I am of the view that these services are specifically included in the definition of input service and that the denial of refund is against law. 2) Renovation works: (Rs.3,06,989/-) It is submitted that the renovation of interior of the premises from where the output services are provided was done by M/s. Trends Interior Group. Ceiling work, painting work, flooring works, glass work etc. was done for upkeep of good interior of the office. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... attendance of employees. It is part of overall control and supervision for efficiently executing output services. As these services are used for providing output services, I hold that credit is admissible. 10) Clearing Forwarding Services: (Rs.2,275/-) The learned counsel submitted that these services were availed for import of computers which are used for providing output services. I find that these services qualify as input service and credit is admissible. 11) House Keeping (Rs.56,768/-) and Cleaning (Rs.5,495/-) The learned counsel for appellant submitted that these services were availed for ensuring a hygienic premises where the vast number of employees work. The definition of input services after 01/04/2011 has an exclusion portion. Clause (c) of this exclusion portion illustrates certain services to be not input services when such services are used primarily for personal use or consumption of employee. Clause (c) beings with the words such as . These words indicate that the services mentioned therein are only illustrative and other services also when used primarily for personal use or consumption of any employee would not qualify as input services. Cleaning se ..... X X X X Extracts X X X X X X X X Extracts X X X X
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