TMI Blog2010 (10) TMI 428X X X X Extracts X X X X X X X X Extracts X X X X ..... i K.S. Chandrasekhar, JDR, for the Respondent. [Order]. - These two appeals are filed by M/s. Heartland Information Consultancy Services Pvt. Ltd., Bangalore. The appellants are aggrieved by the impugned orders which rejected their claims for refund of accumulated Cenvat credit under Rule 5 of Cenvat Credit Rules, 2004 (CCR). The appellant is an STPI unit and is engaged in providing medical transcription services. The entire output services of the appellants are exported. The dispute relates to admissibility of refund of credit earned on the following services. The particulars are as follows : Appeal No. OIO/OIA No. date Services involved Amount of refund Period of Dispute ST/104 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issioner found that the impugned services did not qualify as input services to provide output services of the appellants. He affirmed the order of the original authority. 2. Heard the ld. Counsel for the appellants. Ld. JDR reiterates the findings in the orders of the Commissioner (Appeals). 3. The present dispute relates to the question whether the services in respect of which the appellant has paid service tax qualified as input services for providing output services of the appellants which were exported during the material period. Both the lower authorities have not given findings as to how these services involved do not quality as input services. The impugned services and their entitlement to credit as input services are discussed b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appellants is that the service involved is an activity relating to business of the assessee. I find that the service tax paid on activities relating to business is covered by the definition of input service. It is for the assessee to establish the nexus between input service and output service exported. Activities which are integrally related to the business activity of the assessee are input service. This aspect is remanded to take a fresh decision in the light of the judgment of the Hon ble High Court of Bombay in case of Coca Cola India Pvt. Ltd. v. Commissioner of Central Excise, Pune-III [2009 (15) S.T.R. 657 (Bom.) = 2009 (242) E.L.T. 168 (Bom).]. Their lordships of the Hon ble High Court analysed the scope of input services and ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provident fund, ESI, income tax, audits, etc. I find that the definition of input service includes activities such as audit, accounting, etc. The original authority may examine if the services involved satisfy the definition of activities relating to business. In the absence of any finding of the fact in the orders of the lower authorities on the subject, the nature of services involved is not obvious. A useful guideline in this regard is if these services are essential for conducting the business of the appellants. (v) Rent-a-cab services : The employees of the assessee work 24 hours a day. The appellants arrange for transportation of employees from different points to work place and back. The appellants are necessarily to engage vehicl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder Rule 2(l) of CCR. This aspect is remanded to the original authority to examine the entitlement of the assessee. (vii) Clearance charges : It is submitted that the appellant being an STPI unit has to comply with statutory requirements and engage in documentation for complying with the statutory obligations. The appellants receive services for completing Bond register, liaison with the statutory authorities, customs audit, etc. The claim for credit is in respect of clearing and forwarding agent services. The appellants are not able to explain as to how the actual service rendered by the clearing and forwarding agents is in relation to medical transcription. The relevant facts are not clear from the records. It is open to the assessee t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . It is claimed that these are essential for running the business. This aspect is remanded to the original authority to consider the admissibility in the light of the judgment of the Hon ble High Court of Mumbai in the case of Coca Cola India Pvt. Ltd. (supra). It has to examined if the activity is integrally related to the business of the assessee. (x) Air Travel Agent s Services : It is submitted that executives and employees of the assessee travel to different locations within India and outside India to meet clients for canvassing their business and for training. It appears that the service tax paid under this head for undertaking tours by the executives and employees of the appellants for marketing, promoting and canvassing business i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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