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TMI Blog2017 (3) TMI 618X X X X Extracts X X X X X X X X Extracts X X X X ..... hey were exporting majority of their output services they accumulated the credit on input service and there upon flied refund claims for the accumulated CENVAT credit. A part of the refund claim was rejected by the authorities below and hence these appeals. 3. The various services for which the refund was rejected as well as the amount involved and the submissions made by the appellant in regard to each services is given in the table below as furnished by the appellant. ST/26075/2013 Nature of service Submissions Refund rejected Manpower Recruitment Services 1. Services taken for hiring the manpower, who are working for execution of output service. 2. Recruitment specifically included under the inclusive part of input serv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appellant's own case M/s. Knoah Solutions Pvt. Ltd. v. CC, CE & ST, Hyd-IV [2016-TIOL-1592-CESTAT-HYD] 40,964 AMC for Xerox/ Printing machine 1. Used for taking work reports, day to day business reports - hence essential for output service 2. Para 3.1.2 of Circular No. 120/01/2010-S.T., dated 19-1-2010 clarifies that maintenance/repair of equipment is directly related to BPO business 3. Held eligible in appellant's own case M/s. Knoah Solutions Pvt. Ltd. v. CC, CE & ST, Hyd-IV [2016-TIOL-1592-CESTAT-HYD] 2,524 UPS maintenance charges 1. UPS is required to ensure continuity in provision of service in case power cuttings. BPO services more relies on electronic equipment and any power cuttings would affect the prov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y has nexus with provision of output service. 2. Inward transportation of inputs is specifically included in the definition of 'input service'. 1,177 Total 2,84,570 ST/21336/2014 Nature of service Submissions Refund rejected Manpower Recruitment Services 1. Services taken for hiring the manpower, who are working for execution of output service. 2. Recruitment specifically included under the inclusive part of input service definition. 3. Held eligible in appellant's own case M/s. Knoah Solutions Pvt. Ltd. v. CC, CE & ST, Hyd-IV [2016-TIOL-1592-CESTAT-HYD]; 3,109 Security Agency Charges 1. The protection and safety of the office premise, assets, and employees is necessary more so when appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... epair of equipment is directly related to BPO business 3. Held eligible in appellant's own case M/s. Knoah Solutions Pvt. Ltd. v. CC, CE & ST, Hyd-IV [2016-TIOL-1592-CESTAT-HYD] 1,246 AMC charges for HVAC Equipment (heating, ventilation & AC) 1. As the premises of appellant does not have ventilation naturally, it is required to install equipments to balance the heat and other conditions. 2. Further electronic equipments generates huge heat every day, which requires to be balanced to ensure proper environment inside the office. 3. Relied on Commr of S.T., Bang. v. Yodlee Infotech (P) Ltd. [2015 (39) S.T.R. 695 (Tri.-Bang.)] 25,882 ISMS certification & quality control service 1. Clients gives preference based ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... paid under Reverse Charge Mechanism on import of software. Since the same is directly used for output service. 46,380 Fixed Asset Insurance Protection of business assets is essential for provision of output service and also what is specifically excluded is only life/health insurance and no restriction on asset insurance 6,951 Total 2,99,927 4. The period involved in Appeal No. ST/26075/2013 and ST/21336/2014 are from July, 2011 to September, 2011 and July, 2012 to September, 2012 respectively. 5. On behalf of the appellant, the Ld. Consultant Shri. Venkat Prasad submitted that all the services shown in the table except that of fixed asset insurance services and inward transportation of headset services (input) was analyzed by the Tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ital asset of the company acceptable. Further, the rejection of refund respect of service tax paid on inward transportation of headsets baseless tor the reason that the head sets are essential inputs for the activity of BPO provided by the appellant. Again, the rejection of refund on ITSS cannot be justified further as the appellant has received these services from their parent entity to provide output services of customization of software to a domestic client. The service tax was paid on reverse charge mechanism. Therefore, I hold that the rejection of refund respect of the subject services unjustified. The impugned order to the extent of rejecting the refund set aside. The appeals are allowed with consequential reliefs, if any. (Order Di ..... X X X X Extracts X X X X X X X X Extracts X X X X
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