Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2016 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (3) TMI 203 - CESTAT MUMBAIRefund of Cenvat credit under Rule 5 of Cenvat Credit Rules 2004 read with notification No. 5/2006-CX(NT) - Inclusion of services in the definition of input services - Appellant is BPO Outfit providing Health Club and Fitness Center, Transport Goods by Road and Electricity Expenses services to its client but commissioner disallowed the Cenvat Credit in respect these services on the ground of not falling under the definition of input service and not having nexus with the export of service - Held that: In the BPO services the major involvement is manpower who are required to perform their duties on 24x7 basis when the manpower work in odd times during the 24 hours it adversely affects the health of the employee which directly affects the performance of the services. So, in the BPO companies the health and fitness of the employees is very essential factor in order to run the function of a BPO company. Therefore, health and fitness services availed by the company for their employee is a necessity for providing the better quality of output service and included in the definition of input services. The transportation was used for the various activities of the appellant such as transportation of equipment like computers etc. and there is no evidence available as per show cause notice that transport service was used for transporting the household goods of employees. Therefore, these services are input services even as per the inclusion clause of the definition of input service. When the premises was occupied by the appellant and day-to-day repairs and maintenance are carried out in that premises then obviously, the said services are received and used by the tenant only i.e. the appellant and not by the landlord. The services like repair, maintenance, electricity are directly used by the BPO service provider in order to carry out their day-to-day business activity. Therefore, included in the definition of input services. As all the three services are input services, the Cenvat credit is allowed and are entitled for the refund of Service tax. - Decided in favour of appellant
|