TMI Blog2015 (11) TMI 101X X X X Extracts X X X X X X X X Extracts X X X X ..... s which are essential for the smooth running and business promotion. Accordingly I uphold the same as eligible input service. So far the cable operator service is concerned, the same have been incurred for availing/seeing business channels on television sets, installed in the office premises for the staff to remain updated with the business news & developments which is essential for providing efficient output service. Thus the same is also held to be eligible input service. Formula as given in appendix 5 of the Notification No. 5/2006, only provides to work out the limit of eligible amount where an assessee has got both export and domestic turnover. Accordingly the eligible amount under appendix 5 shall be reworked without deduction of the amount towards credit allegedly wrongly availed, as the same are been found to be eligible. Accordingly there can be no deduction also for credit already utilised during the quarter. - Decided in favour of assessee. - APPEAL NO. ST/89353 to 89355 & 89347/2014 - Final Order Nos. A/1890-1893/2015-WZB/SMB - Dated:- 1-6-2015 - Shri Anil Choudhary, Member (Judicial) For the Petitioner : Shri Tarun Jain, Advocate For the Respondent : Sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rvices, Business Auxiliary Services, Business Support Services and Management, Maintenance or Repair Service. Almost the entire services are exported and this is the reason service tax paid on input services was accumulated and could not be utilized by the appellant. Consequently being eligible, the appellant applied for refund of the input service tax credit, which remained unutilised, under the scheme of Rule 5 of CENVAT Credit Rules, 2004 read with Notification No. 5/2006 CE (N.T.). That refund claims have been allowed in part and partly rejected. The rejection is mainly on 2 grounds, namely some services like architect service, civil construction service, interior decorator service, storage and warehousing service, event management service, works contact service and cable operator service was held to be not an eligible input services for providing output services and accordingly the refund claim on CENVAT credit availed in respect of these services was denied. Secondly while applying the formula as given in appendix 5 of the Notification No. 5/2006, the adjudicating authority reduced from the amount of total credit during the period, the amount of credit utilised during the qu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CENVAT credit is denied, is misconceived as the same have been utilised in providing the output services by the appellant. So far the works contract service is concerned the same have been used with respect to repairs of the premises. It is further urged that modernization, renovation and repairs of office premises is specifically included in the definition of input services under Rule 2(l) of CENVAT Credit Rules, 2004, Similarly civil construction service, interior decorator service, architect service, have been used for repair and renovation and modernization of the office. It is further urged that the observation of the Adjudicating authority, that vide Circular No. 120/1/2010 dated 19/1/2010, it is laid down that the absence of any input service has an adverse impact on the quality and efficiency of the provision of output service exported, it should be considered as eligible input service. Services directly relatable to the export business like renting of premises, the right to use software, maintaining and repair of equipment, telecommunication facilities etc. are certainly eligible. Services like rent-a-cab offered to employees of the office would also be an eligible input s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 06, wherein for the word used in, the words used for was substituted, it had been held by the Tribunal that from the amendment it is apparent that the scope of the admissibility of input services used in providing export services have been brought on par with input services used for providing output services. It is further held that there is no reason to come to any sort of conclusion that the input services in question are not used in providing the output services exported by the appellant herein. Further on examining the definition of input services the Tribunal held that input services used for modernisation, renovation, repair of the office premises are also covered. The Tribunal did not agree with the learned A.R. that advertising, which is an input service, for the manpower recruitment service, will not be eligible. It was further held that any service which is an input for any other input service will get covered under the definition of input service on which credit is sought. 6. So far the second issue in the appeal is concerned, it is regards the disallowance in respect to application of the formula given in appendix 5 of the Notification No. 5 of 2006. The learned Coun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as the right in holding that the Central Government had no power to grant refund of CENVAT credit, when the same was not an issue before it and (iii) whether the Tribunal was right in acting beyond jurisdiction in interpreting the provisions of the statute and holding that the Central Government does not have power to grant refund. It was held by the Hon ble High Court that the adjudicating authority or the appellate authority have not given any details for rejecting the claim of the assessee in respect of the input services in question. Except a statement having made that there is no evidence to substantiate the nexus between the input service and output service. In view of the fact that the assessee had produced material, and also given in tabular column, showing how input services is utilised in the output service, the minimum that was required of the Adjudicating authority, as well as the appellate authority is to refer to what they have said and then say what they feel about it. It was further held that there is no examination by them and accordingly the order of remand was upheld by the High Court. 8. Having considered the rival contentions, I find that the first issue as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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