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TMI Blog2016 (1) TMI 1130X X X X Extracts X X X X X X X X Extracts X X X X ..... l the services are essential services for providing output services. Appellants are exclusively engaged in export of services and no service are provided domestically. Therefore use of all the above services and expenditure thereof born by the appellant are essential services for providing output services. In my prima facie view, appellants are entitle for refund of service tax paid on the above input services in view of various judgments of Hon'ble High Court and Tribunal. I have also observed that in some of the similar services appellants have been sanctioned refund claim therefore in the present case on the same services rejection of refund claim is not legal and proper. As regard appeal No. ST/ 85008/ 15-MUM for the period April, 2010 to June, 2010 of Thane unit wherein credit was availed on the capital goods for an amount of ₹ 1,24,924/- , I find that as per the Rule 5 and Notification No. 5/2006-CE(NT) issued thereunder refund is eligible only in respect of excise duty/ service tax suffered on input/ input services used in export of goods, refund of excise duty paid on capital goods is not admissible in terms of Rule 5 of the CC Rules, 2004 and Notification issued ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... services therefore whatsoever services were received and used, are only for providing output services. Ld. Counsel placed reliance on various judgments which specifically allowed Cenvat credit in respect of input services which are identical to the present case. The case laws are cited below:- I. Air Travel Agent Services 1. Caliber Point Business Solutions Ltd. Vs. Commissioner of Service Tax, Mumbai, 2010 (18) S.T.R. 737 (Tri. - Mumbai) 2. Semco Electric Pvt. Ltd. Vs. Commissioner of Central Excise, Pune 2010 (18) S TR. 177 (Tri. - Mumbai) II. Architect Service 3. Commissioner of Service Tax, New Delhi Vs. M/s Convergys India Pvt Ltd 2009 (16) STR 198 (Tri-Del.) 4. Dell International Services India (P.) Ltd. Vs. Commissioner Central Excise (Appeals), Bangalore 2010 (17) S.T.R. 540 (Tri- Bang.) III. Business Auxiliary Services 5. Semco Electric Pvt. Ltd. Vs. Commissioner of Central Excise, Pune 2010 (18) S.T.R. 177 (Tri. - Mumbai) iv. Banking Financial Service 6. CST v. Convergys India (P.) Ltd. 2009 (16) S.T.R. 198 (Tri. Del.) - Affirmed by Punjab Haryana Court in 2010 (20) S.T.R. 166 (P H) 7. Semco Elec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Appeals), Bangalore 2010 (17) S.T.R. 540 (Tri. - Bang.) xvi. Legal Service 23. Golden Tobacco Ltd. vs CCE, Mumbai-I2013 (30) S.T.R. 594 (Tri. - Mumbai) xvii. Maintenance Repairs Service 24. Dell International Services India (P.) Ltd. Vs. Commissioner Central Excise (Appeals), Bangalore 2010 (17) S.T.R. 540 (Tri. - Bang.) 25. Parason Machinery (I) Pvt. Ltd. Vs. Commissioner of Central Excise, Aurangabad 2009 (16) S.T.R. 20 (Tri. - Mumbai) 26. Castrol India Ltd. Vs. Commissioner of Central Excise, Vapi 2013 (30) S.T.R. 214 (Tri. - Ahmd.) xviii. Management Consultancy Service 27. CST v. Convergys India (P.) Ltd. 2009 (16) S.T.R. 198 (Tri. - Del.) - Affirmed by Punjab Haryana Court in 2010 (20) S.T.R. 166 (P H) xix. Manpower Recruitment Supply Agency Service 28. C. Cubed Solutions (P). Ltd. Vs. Commissioner of Central Excise, Bangalore 2013 (29) S.T.R. 385 (Tri. - Bang.) xx. Pandal and Shamiana Service 29. H.E.G. LTD. vs CCD, Raipur 2010 (17) S.T.R. 178 (Tri. Del.) xxi. Renting of Immovable property 30. Jeans Knit P. Ltd. vs. CC, Bangalore 2011 (21) S.T.R. 460 (Tri. Bang.) xxii. Outd ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ome of services have nexus with export of services, it is necessary to know what is the nature of services and use thereof by appellants. Therefore I reproduce the details of the services as submitted by the appellant:- I. Air Travel Agent's Service - The Appellant had engaged the services of M/S. Kuoni Business Travel India Pvt. Ltd. in relation to booking of air tickets for the purpose of business travel of its employees/ management and accordingly the Appellant incurred expenditure for the above services. - The Appellant is in the business of providing services to its overseas customers (who do not have an office in India) hence overseas traveling of its employees/ management is part of its business. - Traveling to visit customer is essential inter alia to understand the customer needs, discuss business propositions and engaging the customer to secure additional work. - The Appellant has filed along with reply to SCNs, copies of Invitation Letters received from overseas clients/ companies for employees travelling for official business purpose. II. Architect Service -The Appellant incurred expenses are in connection with repair, alteratio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lling abroad for official business purpose. It would not have been possible for appellant to provide output services without availing contemplated input services. Appellant provides 100% taxable output services and hence all input services availed by it are exclusively for providing taxable output services. Since the entire services are provided to overseas customers, CENVAT credit of service tax paid on such services is admissible. VI. Courier Service: - The courier services are used by Appellant for C F charges for clearance of computer Server for official business purpose used for providing output services exported. - The refund claims should not be rejected on the ground that invoice do not bear the PAN based service tax registration numbers of the vendor and hence cannot be considered as valid document for availing CENVAT Credit. The Appellant had submitted the copy of Service tax Registration certificate of the vendor along with input invoice at the time of filing of the refund claims. The service tax registration certificate clearly mentions pan based registration number of the vendor. Vll. Chartered Accountant Services - These are the expenses inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gs for employees are conducted which are organized with the help of event managers. Given this, such expenses are essentially for services used in providing output services exported as it would not be possible for us to provide output services without trained and skilled people. - In view of the above stated facts it is apparent clear that the Event Management services are required for the training / development and retention of the employees and hence, qualify as input services as are used for activities relating to business. X. Erection, Commissioning Installation - The Appellant have incurred expenses in connection with installation charges of fire alarm system and public addressable system in office premises from where output services are exported. These expenses are incurred in connection with the regular up-gradation and repair and maintenance work of the office equipment, which are required to enable us to provide the output services. The repairs of the premises of output services provider or an office relating to such premises is specifically covered under the inclusive part of the definition of input service. - The entire services provided by us are based ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty and welfare of the employees of the company. - Further, the said CENVAT credit has been claimed up to 31/03/2011 only and after 01/04/2011 due to specific exclusion from the definition of Input Service, no CENVAT credit has been availed on the said service Xlll. Interior Decorator -The Appellant incurred expenses are in connection renovation and alteration of office Premises. These expenses are incurred in connection the regular maintenance work of the office premises, which are required to enable the Appellant to provide the output services. - The repairs of the premises of a provider of output services provider or an office relating to such premises is specifically covered under the inclusive part of the definition of input service. XIV. Information Technology Software Service - The Appellant had engaged the services of M/s. Dove Soft Pvt. Ltd. towards bulk SMS services. This service is used by Appellant to issue immediate alerts, updates or messages to employees / roaming employees about emergencies and critical situations and to ensure that output service is provided efficiently. Since our office run on 24 x 7 basis and as entire services are pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cipient of services under reverse charge mechanism as the said foreign service provider did not have any office in India, the Appellant have, as a recipient of services, registered themselves and paid service tax on this Manpower Recruitment service. These expenses are essential as without these services it would not be possible to provide output services. -The Appellant has filed copies of G.A.R.7 challan of Service Tax as a recipient of services under reverse charge mechanism and copy of Invoice and Bank Statement evidencing the payment, along with refund claim. XIX. Pandal Shamiana Service - These services are in relation to employee welfare activities. Such activities are critical for the motivation, engagement and retention of our employees. The Appellant submits that in a technology driven industry it is imperative that the employees are constantly motivated to ensure they continuously keep up their high performance. Such activities are also essential for team building and occasional get together. It also helps to keep attrition level under control. - Further, under our global service agreements with our customers we are under an obligation to employ hig ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s rent along with service tax. Godrej Boyce Mfg. Co. Ltd supplies us clean water for use in office premises from where we provide output services. As the premises belong to Godrej Boyce Mfg. Co, Ltd., they supply us clean water for use in office premises. These expenses are extremely critical as without supply of clean water to office premises it would not be possible for us to provide output services. Hence, unless there is continuous supply of clean water for our office premises, it would not be possible for us to provide services. XXI Outdoor Catering Service - We have incurred expenses in connection with provision of food to our employees. Since our offices run on 24 x 7 basis and provision of food to employees are necessary pre-requisites which we have to provide to our employees to ensure that output service is provided efficiently. - Further, the said CENVAT credit has been claimed up to 31/03/2011 only and after 01/04/2011 due to specific exclusion from the definition of Input Service, no CENVAT credit has been availed on the said service. XXII. Online Information Database Service - The Appellant had engaged the services of M/s. Legalpundits ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ure thereof born by the appellant are essential services for providing output services. In my prima facie view, appellants are entitle for refund of service tax paid on the above input services. 6.1 I have also gone through judgments cited by the Ld. Counsel and find that in respect of almost all the services Cenvat credit was allowed holding it as input services, therefore judgments cited are squarely covered the issue involved in the present case. I have also observed that in some of the similar services appellants have been sanctioned refund claim therefore in the present case on the same services rejection of refund claim is not legal and proper. 6.2 As regard appeal No. ST/ 85008/ 15-MUM for the period April, 2010 to June, 2010 of Thane unit wherein credit was availed on the capital goods for an amount of ₹ 1,24,924/- I find that as per the Rule 5 and Notification No. 5/2006-CE(NT) issued thereunder refund is eligible only in respect of excise duty/ service tax suffered on input/ input services used in export of goods, refund of excise duty paid on capital goods is not admissible in terms of Rule 5 of the CC Rules, 2004 and Notification issued there under. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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