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TMI Blog2018 (2) TMI 231X X X X Extracts X X X X X X X X Extracts X X X X ..... provider of output service for providing the output service. Refund is also disallowed for ₹ 7,338/- alleging that the appellant has availed credit on debit notes instead of invoices - Held that: - In Ad-Manum Packagings Pvt. Ltd. Vs. Commissioner of Central Excise, Indore [2017 (4) TMI 209 - CESTAT NEW DELHI], similar issue came for consideration wherein the Tribunal held that debit notes are valid documents for availing credit - the issue whether credit is admissible on debit notes has to be relooked by the adjudicating authority - matter on remand. Another ground for rejection of refund is that there is difference in the amount shown in ST3 returns and the refund claim with respect to total credit availed by the appellant - Held that: - It is explained by the Id. consultant that the appellant could not revise the ST-3 returns after coming to know that the credit availed is shown incorrectly in the ST-3 returns filed. This aspect also requires verification as to whether the appellant has correctly calculated the total credit for which the refund claim has been filed - matter on remand. CENVAT credit - air travel agency service - Held that: - In the impugned order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es - No Nexus 8,11,938/- 4. Difference in ST-3 and Refund claim 4,06,072/- 5. Renting of Immovable property- No Nexus 1,42,390/- 6. Supply of tangible goods for hire - No Nexus 8,997/- 7. Different yardstick for expert turnover and total turnover 3,49,046/- 5. He submitted that the period involved is prior to 1.4.2011 and the definition of input services had wide ambit as it included the words activity relating to business . (a) The management consultant services were availed by the appellant to coach their employees for the purpose of business operation of the company. That such services will enhance the skills of the employees and improve the outcome / potential of the employees and therefore are eligible for credit. (b) Interior Decoration Services were used to create as well as to modernize their office infrastructure. Appellant uses expensive IT equipment and installations and these would run efficiently only in an air ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reduced the extent of the refund claim and also proportionately rejected the refund claim to the extent of ₹ 3,49,046/- / due to the different between export turnover as shown in ST3 return and export turnover as shown in Form A. With regard to the export turnover, he added that the difference is due to the credit notes raised during statutory audit and since there is no option under the Finance Act, 1994 to file a revised return after 90 days of filing the original return, the appellants were unable to submit the revised return and hence there is a difference between the ST3 Return and refund claim. He argued that there is no dispute with regard to the service tax paid and therefore the credit ought not to have been denied for the simple reason that the same was not reflected in the ST3 returns. It is also emphasized by him that the appellant is a 100% EOU and there are no domestic clearances and therefore the export turnover ought to have been calculated basing upon the credit availed as shown in Form A. To canvass the proposition that the said error is only a procedural one, Id. consultant relied upon the decisions of the Tribunal in the cases of Commissioner of Service T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot allowed due to clerical errors 7,828/- 7. Refund disallowed as debit note 7,338/- 8. Transport of road 9,620/- 7. The period involved in these appeal is post 1.4.2011. The Id. consultant submitted that :- (a) Event Management Services were availed in relation to organization of annual get together event conducted for all the employees of the company. These services are availed since it is not possible to conduct these meetings within the company premises as these meeting involve large participation of employees. These types of events enhance the motivation levels of the employees which will in turn increase their productivity thereby increase in profits of the company and it involves recognition of performance of employees during the year etc. He therefore submits that these services are also eligible for credit being related to the business activity of the appellant. (b) Photography Services - The appellant had engaged professional photographer to capture employee communication events organized by the company such as employee annual ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es incurred by Custom House Agent in performing their service. He submits that these expenses were essential and integral part of the service provided by the service provider and hence eligible for availing credit. That in several decisions, it has been held that credit can be availed in debit notes. (h) Transport of goods by road - The appellant has availed the service of transport of goods by road to facilitate employees for the relocation of residence of employees. That these services will enhance the employee engagement which will improve the productivity of the employees and hence these are to be treated as input services. These services are also eligible for credit being related to the business activity of the appellant. ST/40145/2013 8. The above appeal is filed by the department against the order passed by Commissioner (Appeals) who allowed the credit / refund on Air Travel Agency service for the period after 1.4.2011. The Id. AR has reiterated the grounds of appeal. It is submitted by him that the services have no nexus with the output service and therefore the Commissioner (Appeals) ought to have disallowed the credit / refund. a. On behalf of the de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e India Pvt. Ltd. Vs. Commissioner of Central Excise, Pune - 2016 (41) STR 990 (c) Commissioner of Central Excise, Hyderabad Vs. Deloittee Tax Services India Pvt. Ltd. - 2008 (11) STR 266 (d) Delphi Automotive Systems Pvt. Ltd. Vs. Commissioner of Central Excise, Noida - 2013 (30) STR 311 (e) Toyota Kirloskar Motor Pvt. Ltd. Vs. Commissioner of Central Excise - 2011 (24) STR 645 (Kar.) (f) Commissioner of Central Excise Vs. M/s. Rane TRW Steering Systems Ltd. - 2015 (4) TMI 704 (Mad.) (g) Toyota Kirloskar Motor Pvt. Ltd. Vs. Commissioner of Central Excise, LTU, Bangalore - 2011 (24) STR 645 (Kar.) 11. Following the ratio laid down in the above cited cases, I find that the disallowance of credit on the subject services is unsustainable and requires to be set aside which I hereby do. 12. The appellant has submitted that the insurance services were availed to take care of the liability of the Director and officers of the company as indemnification for losses or advancement of cost that may be incurred to the company. That these services are not in the form of personal consumption of the employee. In the case of Commissioner of Service Tax V ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /41725 41726/2017. An amount of ₹ 7,828/- has been rejected on the ground of clerical errors. On perusal of the records, it is seen that the invoices did not show the registration of the service provider details and other such details. The department has not disputed the service tax paid as well as the use of these services by the appellant. If there is no dispute with the payment of service tax and use of services, the mere absence of certain particulars in the invoices cannot be a ground to deny credit / refund as it is only a condonable error. I am of the view that refund ought to be paid in respect of clerical error. 15. Refund is also disallowed for ₹ 7,338/- alleging that the appellant has availed credit on debit notes instead of invoices. In Ad-Manum Packagings Pvt. Ltd. Vs. Commissioner of Central Excise, Indore - 2017 (346) ELT 142 (Tri. Del.), similar issue came for consideration wherein the Tribunal held that debit notes are valid documents for availing credit. I am of the view that the issue whether credit is admissible on debit notes has to be relooked by the adjudicating authority basing on the above decision of the Tribunal. The said issue is rem ..... X X X X Extracts X X X X X X X X Extracts X X X X
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