GST Helpdesk   Subscription   Demo   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2015 (10) TMI 2409 - CESTAT MUMBAI

2015 (10) TMI 2409 - CESTAT MUMBAI - 2016 (41) S.T.R. 994 (Tri. - Mumbai) - Stay on Refund of cenvat credit - Banking and financial services and technical inspection and certification services Import of Rough Diamonds - Revenue contends that scope of Notification 17/2009-S.T is very specific and no scope for allowing refund of credit pertaining to services utilised by Respondents. - Held That:- Contentions of Revenue that service tax paid on 'banking and other financial services' and 'tech .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

to business of manufacture whether same is prior or subsequent to manufacture Decision made in case of Meghmani Dyes & Internationals Ltd. v. CCE [2014 (1) TMI 558 - CESTAT AHMEDABAD] followed Stay rejected. - APPLICATION NO.ST/STAY-92472 TO 92478/2015, APPEAL NO. ST/85337 TO 85343/2015 - Final Order Nos. A/3120-3126/2015-WZB/STB - Dated:- 28-8-2015 - M.V. RAVINDRAN, AND C.J. MATHEW, JJ. For Th eAppellant : S.V. Nair, Asstt. Commissioner (AR) For The Respondent : Bharat Raichandani, Adv. OR .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

s and perused the records. 4. The issue involved in this case is regarding refund of the amount of service tax paid on input service i.e. 'banking and financial services' and 'technical inspection and certification services'. The respondent's are engaged in the business of import of rough diamonds and manufacture and export of cut and polished diamonds and is a star trading house. The respondent submitted from time-to-time various applications for refund of CENVAT credit whic .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

al was withdrawn by the appellant, but set aside the impugned order in respect of the non-sanctioning of refund on 'banking and other financial services' and 'technical inspection and certification services'. 5. Learned Departmental representative would draw our attention to the findings recorded by the adjudicating authority and also the grounds of appeals. It is his submission that the refund claims are filed as per Notification 17/2009-S.T. and the said provisions are very spe .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

t the said Notification talks about the services received and used for export of goods while the CENVAT credit availed is in respect of the services which were rendered for import of goods also. It is his submission that the Notification 17/2009-ST is an exemption Notification and needs to be strictly followed. It is his submission that in certain cases input invoices could not be correlated with the export documents. He would also draw our attention to the fact that details of the service tax p .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ther financial services is in respect of the business activity of the respondent of import and export of diamonds and the issue is now squarely covered by the decision of the Tribunal in the case of CST v. Convergys India (P.) Ltd. [2009] 21 STT 67 (New Delhi - CESTAT). He would also submit that this bench of the Tribunal in the case of KAPIT Cummins InfoSystems Ltd. v. CCE [2014] 43 GST 266 (Mum. - CESTAT) has also held that any services rendered for the export of goods or services are eligible .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

case of Oblum Electrical Industries (P.) Ltd. v. Collector of Customs 1997 taxmann.com 507 has also asserted that the explanations to Notification must be so construed as not to eliminate the distinction between the words and should be construed keeping in view the object and purpose of the exemption Notification. It is his submission that this Tribunal in the case of Meghmani Dyes & Internationals Ltd. v. CCE [Final Order No. A/2078/2011-WZB/Ahd, dated 22-11-2011] has held banks charges pai .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

or the purpose of exporting the jewellery and cut and polished diamonds, the respondent used various input services and two of the services which are in dispute are the 'banking and financial services' and 'technical inspection and certification service'. We find that the Revenue's contention in these appeals that the service tax paid on 'banking and other financial services' and 'technical inspection and certification services' cannot be correlated to the exp .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e various services which are used for rendering the goods exportable. In the case in hand, we find that the banking services are utilised by the respondent for raising finance for import as well as for the purpose of export of the goods manufactured by him. In our view, the interpretation put forth by the learned departmental representative and by the Revenue in the grounds of appeal of Notification 17/2009-ST are very narrow, cannot be accepted. This our above view is fortified by the judgment .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ty to rebate can not be questioned. 7.1 In common parlance, if the cost of such and services becomes part of the cost of the final product or the cost of the output services, as the case may be, then they are understood as input and input services in relation to said final products or the output services." 8. The Hon'ble High Court Bombay in the case of ONGC (supra) in paragraph 13 laid down the law as to what should be construed of the expression 'input services' as defined und .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

nal product or premises of the provider of output service on or after the 10th day of September, 2004; and (ii) any input service received by the manufacturer of final product or by the provider of output services on or after the 10th day of September, 2004." (Emphasis Supplied) In the present case, it is clause (ii) which is of relevance. Hence, in order to enable a manufacturer to avail of Cenvat credit, the requirement is that the duty of Excise ought to have been paid on any input servi .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ization, renovation or repairs of a factory, premises of provider of output service or an office relating to such factory or premises, advertisement or sales promotion, market research, storage upto the place of removal, procurement of inputs, activities relating to business, such as accounting, auditing, financing, recruitment and quality control, coaching and training, computer networking, credit rating, share registry, and security, inward transportation of inputs or capital goods and outward .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

or indirectly, in or in relation to the manufacture of final products and clearance of final products upto the place of removal. The expression "directly or indirectly" has a wide import. The service, in other words, need not be a service which is directly used by the manufacturer in the manufacture of a final product. The definition of "input service" comprehends within its sweep a service which is used by the manufacturer even indirectly, and in or in relation to the manufa .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

of input or input service which is used in the manufacture of exempted goods or for provision of exempted services, save in the circumstances which are mentioned in Rule 6(2). Rule 6(2) deals with a situation where inter alia a manufacturer manufactures both dutiable final products as well as exempted goods. In such a situation, in order to avail of Cenvat credit, the manufacturer is required to maintain separate accounts for the receipt, consumption and inventory of inputs and input services me .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version