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2019 (2) TMI 19 - AT - Service TaxRefund of CENVAT Credit - input services - Air Travel Agent Services - Banking & Financial Services - Business Auxiliary Services - General Insurance Services - denial on account of nexus - Denial of excess refund claim to the Appellant for the quarters October, 2014 to December, 2014 and January, 2015 to March, 2015. General Insurance Services - Held that:- The insurance policy is taken by the Appellant in relation to the financial risks during the course of business that may arise upon the appointment of the employees as Nominee Director/Alternate Director in the investee company and not for the personal consumption of the employees. The said input service is used in the course of provision of output service and has not only a nexus with the output services but is essential for the business of the Appellant, therefore the Appellant is eligible for CENVAT credit on “General Insurance Services” - refund allowed. Air Travel Agent Services - Held that:- The Appellant has availed those services for booking air tickets for the travelling of its employees for official meetings with the client at various locations. Those meetings are conducted to enable to the Appellant to understand the needs of the overseas client and to deliver qualitative services to them. These meetings are essential for the business of the Appellant and in its absence, the business of the Appellant is going to be affected - this input service as availed by the Appellant in connection with its business are essential for the provision of output services and therefore the Appellant is entitled for refund of Service Tax on the said services - refund allowed. Storage and Warehousing Services - Banking & Financial Services - Business Auxiliary Services - Held that:- These services are essential and there is nexus between the input services and output services and therefore for these services also the Appellant is entitled for refund - refund allowed. Denial of excess refund claim to the Appellant for the quarters October, 2014 to December, 2014 and January, 2015 to March, 2015 - denial on account of non-reversal of erroneous credit availed by the Appellant in their ST-3 return - mis-match between the opening and closing balance for the month of September, 2014 & October, 2014 - Held that:- Both the Authorities below have erred in considering the amount of unutilised credit for the quarter, which was calculated by deducting the amount of domestic services tax liability for the period discharged through utilisation of CENVAT credit, from the amount of CENVAT credit availed by the Appellant during the period. The submission of the Appellant seems to be reasonable that nowhere in Notification No. 27/2012 or in Rule 5 ibid there is a requirement to consider the amount of unutilised credit for the period. The calculations/tables have been produced by the Appellant for comparing the amount of CENVAT credit balance available on the last day of the quarters, on the day of filling the refund claim and also the quantum of refund claim worked out as per Notification No. 27/2012- CE (NT) dated 18.06.2012 - it is clear that the Appellant has followed calculation as prescribed by Notification No. 27/2012 and Rule 5 ibid, and has rightly claimed refund of the lowest amount for the relevant quarters viz. October, 2014 to December, 2014 and January, 2015 to March, 2015 and there is no question of excess credit availed by the Appellant - refund allowed. Appeal allowed - decided in favor of appellant.
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