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2015 (8) TMI 595 - CESTAT NEW DELHI

2015 (8) TMI 595 - CESTAT NEW DELHI - 2015 (40) S.T.R. 369 (Tri. - Del.) - Cenvat Credit - various input services - nexus with output - Refund claim of unutilized Cenvat credit - Rule 5 - Export of services - Held that:- service of renting Car parking space used for parking of the vehicles of the Officers/Employees of the assessees Company has nexus with the business of the assessee - Credit allowed.

Hotel bills for stay of auditor when he visited Chennai for audit of the appellants .....

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Renting of equipments for organizing events and Event Management Service - Held that:- In a catena of decisions it has been laid that any service in relation to the business of providing the output service would get covered. - credit allowed.

Advertisement and Sponsorship Service - Department contends that the appellants being a software company engaged in export, these input services pertains to brand HCL which is widely known for hardware and therefore the appellants are no .....

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Immigration Services - pertaining to the spouse and daughter - Held that:- These services do not qualify to be input service to avail credit - credit denied.

Rent-a-Cab Service - Held that:- According to appellants the service is used to pick up and drop the employees on daily basis so that they reach on time and these facilitate the output services. It has been settled in a series of judgments that Rent-a-cab service qualifies as input service for the relevant period. - credit allowe .....

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B.L. Narsimhan, Advocate For the Respondent : Shri R.K. Grover, DR ORDER Per: Sulekha Beevi C.S. 1.1 The appeal is filed challenging the denial of Cenvat Credit. 1.2 The appellants are engaged in providing taxable service of Information Technology Service, Maintenance & Repair Service, Technical testing & Analysis Service and Business Support Service. They are also making export of services. The appellants are availing facility of Cenvat Credit. For the period October 2011 to December 20 .....

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he details of input services for which refund was denied as per the impugned order is as under:- Sl.No. Input Service Amount in Rs. Reasons for denying the credit/refund 1. Car Parking Service 37427/- No nexus between input service and output service provided. 2. Room Service Charges 1442/- It is for stay of an individual and has nothing to do with the export of service. 3. Dry Cleaning Charges 28292/- It is not essential for the export of service. 4. Renting of equipments for organizing events .....

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for spouse and daughter. 9. Maintenance of garden 11,872/- It has no nexus with provision of the output service. 10. Rent-a-cab service 22,751/- Service has been used prior to the relevant period (refund claim for the period Oct. 2011 to Dec. 2011). 11. Charges for accommodation 63,345/- Service have been availed to provide onsite support and software implementation to the domestic customers and not overseas customers. Total 28,33,287/- 2. The claim of refund for Car parking Services was denied .....

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r parking of the vehicles of the Officers/Employees of the assessees Company has nexus with the business of the assessee and has to be treated as an activity related to business. Applying the ratio laid in the above judgments I find that appellants are entitled to credit of ₹ 37,427/- towards car parking service. 3. The appellant has claimed credit/refund of Room Service Charges of ₹ 1,442/-. The payment, according to appellant, is made towards hotel bills for stay of auditor when he .....

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in the inclusive part. Therefore, I hold that the appellants are entitled to the credit of ₹ 1,442/- towards Room Service charges for auditing. 4. An amount of ₹ 28,292/- has been disallowed towards the services of cleaning. As per the documents the services were dry cleaning of carpet, cleaning of chairs and glass etc. In the cases of paper products Ltd. Vs. CCE, Mumbai-III 2013 (30) STR 310 (Tri.-Mum.) it has been held that cleaning services has nexus with business activity of manu .....

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he input services and the services exported. On behalf of the appellants it is submitted that such events were for promoting sales, for staff development and augmenting the business of the company. Appellants relied on the judgments in Toyota Kirloskar Motor Private Ltd. Vs. CCE., LTU. Bangalore 2011 (24) STR 645 (Kar.) and Endurance Technologies Pvt. Ltd. Vs. CCE., Aurangabad 2012 (32) STR 95 (Tri.-Mum.) in which cases the issue has been decided in favour of the assessee. The learned DR reitera .....

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77; 6,95,878 + (Renting of equipment) + ₹ 11,001 (event management service) is eligible for credit as I find that these services qualify as input services. 6. The charges of ₹ 361/- towards Vat Registration was denied as the documents were defective. It is the case of Department though appellants contend that the charge, incurred for getting additional place being registered, the same is not ascertainable from the document. As the document is defective and appellants have not furnish .....

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which is widely known for hardware and therefore the appellants are not entitled to credit. The Original Adjudicating Authority has taken this view which was upheld by the Commissioner (Appeals). The Original Adjudicating Authority for that matter has placed reliance on the reply filed by the appellants. In Para 6.14 of the Order-in-Original it is seen stated that from the reply submitted it is clearly evident that the above services are for promotion of their Brand, and brand HCL also includes .....

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nd presumptions. In my opinion they have wrongly entered into conclusion that the benefit of advertisement services must be confined to HCL hardware alone, as the brand HCL is more popular for its hardware, and the appellants being a company engaged in software, is not entitled to the credit. Further the observation of the adjudicating authority that it is reflected from the written reply submitted by appellants is factually wrong. For these reasons I am of the view that appellants are entitled .....

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ehalf of the Revenue it was submitted that there is no relation between out of pocket expenses and the services exported to avail the benefit of Cenvat Credit. In this aspect I agree with the Departmental Representative. The words out of pocket expenses is too wide and lacks definiteness as to the kind of service which would qualify to be an input service. Therefore I concur with the opinion of the authorities below and deny the credit on service tax paid on these. 9. An amount of ₹ 26,050 .....

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put service to avail credit and therefore the Commissioner (Appeals) has rightly rejected the same. 10. In a series of judgments the Tribunal has held Garden Maintenance Services qualify as input services. Therefore the observation of the authorities below that it has no nexus with the output service is untenable. The same is therefore allowed. 11. Appellant claim Credit of ₹ 22,751/- towards Rent-a-Cab Service. It was pointed out that these services were received between December 2010 to .....

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service is used to pick up and drop the employees on daily basis so that they reach on time and these facilitate the output services. It has been settled in a series of judgments that Rent-a-cab service qualifies as input service for the relevant period. For this reasons I allow the credit on Rent-a-Cab Service of ₹ 37,427/-. 12. The appellants contend that they are entitled to refund of ₹ 63,345/- being Accommodations Services. On behalf of appellants it is submitted that the emplo .....

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