Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2013 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (2) TMI 583 - CESTAT MUMBAIRefund claim of Cenvat credit - Export - Input services - service tax paid on “business auxiliary service” - unable to utilize the credit availed - nexus between input services and the output services rendered. - Held that:- Perusing the agreement relating to marketing fees and as per the “Business Associates Agreement” entered into by the appellant with Syntel Inc., USA has agreed to provide marketing services in relation to software services developed by Syntel International Pvt. Ltd., India and Syntel Inc., USA has to identify customers in USA and make efforts to get the customers and assist Syntel (India) inrespect of sales in USA by providing sales and technical information and other materials regarding Syntel services including sales promotion literature or brochures. It is for rendering these assistance, the consideration is paid. The consideration is paid in convertible foreign exchange and the appellant has discharged the service tax liability on reverse charge basis under Section 66A of the Finance Act, 1994. The said services squarely fall under the category of “business auxiliary service” as defined in Section 65 (19) and the taxable service covered under Section 65 (105) (zzb) of the Finance Act 1994. Such service falls within the definition of input service under Rule 2 (l) of the Cenvat Credit Rules, 2004. Thus assessee allowed for refund of service tax paid on “business auxiliary service” on reverse charge basis, which was rejected in the impugned order - in favour of assessee.
|