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2018 (11) TMI 421 - AT - Service TaxClassification of services - Refund of input CENVAT Credit - export of services which are in the nature of ‘Business Auxiliary Services’ - whether the services rendered by the appellant fall under BAS or ITSS? - CBEC Circular No. 62/11/2003-ST dated 21.08.2003 - Held that:- IT services are only those services which are primarily used in relation to operation of computer system and other services even if they use computer systems do not deserve to be classified as ITSS. It is not in dispute in the present case that the nature of services rendered by the appellant through M/s Zavata Inc, USA to their clients are in the nature of documentation and other services related to health administration. Clearly it is nobody’s case that appellant is maintaining their computer systems or managing their software. CBEC’s clarification in this Circular leaves no doubt that the appellant’s services do not get covered under ITSS but fall under BAS which were taxable during the relevant period. Since, they have exported these services they are entitled to the benefit of the refund of the input service tax. The disputed services all have a direct bearing in the provision of the export services and lack of these services will definitely effect the provision of output services. Appellant is eligible for refund - appeal allowed - decided in favor of appellant.
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