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TMI Blog2018 (7) TMI 436X X X X Extracts X X X X X X X X Extracts X X X X ..... gainst the impugned order wherein refund claim for the period April 2012 to September 2013 filed under Rule 5 of Cenvat Credit Rules, 2004 read with Notification No. 27/2012 dated 18.06.2012 has been rejected. 2. The brief facts of the case are that the appellant is registered with the Service Tax Department under the category of business Auxiliary Services. The appellant filed Credit Rules, 2004 read with Notification No. 27/2012 dated 18.06.2012 for unutilized Cenvat credit availed on input services used for providing taxable services under the category of Business Auxiliary Services in respect of Export of Services. The Adjudicating authority sanctioned the refund claim but on appeal the Commissioner (Appeals) held that the appellant is providing intermediary services in terms of Rule 2(f) of Place of Provision of Rules, 2012, therefore, as per Rule 9 of the said Rules, location of service provider is the place of provider of service, hence the appellant was required to pay service tax under reverse charge mechanism. Therefore, the appellant cannot refund of Cenvat credit lying unutilized in their Cenvat account. Against the said order, the appeal is before us. 3. The Ld. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reproduced as under:- Intermediary means a broker, an agent or any other person, by whatever name called, who arranges or facilitates a provision of a service (hereinafter called the main service) or a supply of goods, between two or more persons, but does not include a person who provides the main service or supplies the goods on his account. 8. Further Rule 9 of Place of Provision of Services Rules, 2012 is also placed on record. For better appreciation, the same is also reproduced below:- 9. The place of provision of following services shall be the location of the service provider (a) Services provided by a banking company, or a financial institution, or a non- banking financial company, to account holders; (b) Online information and database access or retrieval services; (c) Intermediary services. 10. As per Rule 2(f) of the Rules Intermediary means a broker, an agent or any other person, by whatever name called, who arranges or facilitates a provision of a service (hereinafter called the main service) or a supply of goods, between two or more persons, but does not include a person who provides the main service or supplies the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wn account. Similarly, applicant is providing business support service such as marketing and other allied services like oversight of quality of third party customer care centre operated in India and payment processing services, on behalf of GoDaddy US. Therefore, these services provided by the applicant to GoDaddy US cannot be categorized as intermediary or services, as intermediary service. 11. Applicant proposes to provide support services in relation to marketing, branding, offline marketing, oversight of quality of third party customer care centre and payment processing, on principal to principal basis. These services are proposed to be provided with the sole intention of promoting the brand GoDaddy US in India and thus augmenting its business in India. Therefore, these services proposed to be provided by the applicant, would support the business interests of GoDaddy US in India. 12. It has been submitted by the applicant that services to be provided by the applicant are not peculiar only in applicant s case but are provided by various Indian entities to their overseas customers in India as a single package. Further, supporting the business of GoDaddy US in India is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the services are qualified as Intermediary Services . Rule 9 of POPS Rules, 2012 will apply which states that the place of provision of services provided will be the location of service provider. Since the place of provision of services in the taxable territory, hence services do not qualify as export under Rule 6A of the Service Tax Rules, 1994. In view of the above, it is clear that M/s. LBF is providing intermediary services and are not eligible to claim refund of unutilized Cenvat credit. The respondent had submitted that LBF India is basically a call centre which provides services to its parent company i.e. LBF Travel company Inc. The parent company M/s.LBF Travel Inc. Is a leading travel company having its head office in USA and engaged in selling domestic international air tickets to its customer in USA. Further the services provided by LBF are services in an integral manner to assist LBF Travel Inc. To increase its sales and reservations, carry on its operations efficiently and serve its customers, which are as under: Call centre service: (i) Attending Calls; (ii) Processing Reservations; (iii) Processing Payments. Thus in LBF is not falling under the definit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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