2025 (7) TMI 1538 - AT - Service Tax

Refund of unutilised cenvat credit availed on various input services which have been used in the export of service - N/N. 5/2006-CE(NT) dated 14.03.2006 - HELD THAT - The issue is no more res integra and as evident from the Tribunal s Final Orders relied upon by the appellant in their own case for different periods for the same set of services as per the same agreement the dispute is settled and refunds claims were allowed. Further as per the Order-in-Appeal appellate authority categorically held that the service would fall under the category of Scientific or Technical Consultancy service and not under the category of Technical Testing or Analysis Service . As regarding the correlation between the input services and output services this Tribunal in appellant s own case had held that all services on which credit is availed would qualify as input services. Regarding the various input services such as management or business services technical inspection and certification service legal consultancy service travel agent service internet telecommunication service marketing and advertising service online information and database access company secretary service and design services against which refund was considered and allowed by this Tribunal in the above-mentioned Final Orders. As regarding event management service this service is utilised for annual day celebration wherein the achievements of employees are acknowledged and as held in the matter of Toyota Kirloskar Motors Ltd. Vs. CCE 2011 (3) TMI 1373 - KARNATAKA HIGH COURT these services are also eligible as input services. Appeal allowed.

Summary

ISSUES:

Whether appellants are eligible to claim refund under Notification No.5/2006-CE(NT) dated 14.03.2006 on unutilised cenvat credit availed on various input services used in the export of service.Whether the services provided by appellants qualify as export of service or fall under the category of 'Technical Testing and Analysis Services' performed in India.Whether there exists a nexus between the input services on which cenvat credit is availed and the output services claimed as export.Whether the department can take a different stand on classification after the issue has attained finality in earlier orders.

RULINGS / HOLDINGS:

The appellants are eligible to claim refund under Notification No.5/2006-CE(NT) dated 14.03.2006 on unutilised cenvat credit availed on input services used in the export of service, as the services provided qualify as 'Scientific or Technical Consultancy service' and not 'Technical Testing or Analysis Services'.The Tribunal held that the services carried out by appellants are rightly classifiable under 'Scientific or Technical Consultancy service' and not under 'Technical Testing and Analysis Services', as supported by earlier Final Orders in appellant's own case for different periods.All services on which credit is availed qualify as input services, establishing the requisite nexus between input services and output services claimed as export.The department cannot take a different stand when the issue has attained finality, as held in binding precedents.

RATIONALE:

The legal framework applied includes Notification No.5/2006-CE(NT) dated 14.03.2006 governing refund of unutilised cenvat credit, and classification principles under service tax law distinguishing 'Scientific and Technical Consultancy' from 'Technical Testing and Analysis Services'.Precedents relied upon include Tribunal decisions allowing refund claims on similar facts and agreements, and Supreme Court rulings establishing that the department cannot adopt contradictory positions once the issue is settled.The Tribunal emphasized the definition of 'Scientific and Technical Consultancy' as "any advice, consultancy, or scientific or technical assistance in any manner," and distinguished it from mere testing services, which do not attract service tax as per Circular No.F.No.B.11/1/2001-TRU dated 9.7.2001.The Tribunal noted that the appellants' services involved "pure research in developing chemical compounds" supplied to group companies outside India, supported by agreements specifying the nature of services and consideration, thus qualifying as export of service.The Tribunal's consistent prior orders in appellant's own case for different periods were considered authoritative, demonstrating a settled position on classification and eligibility for refund.