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2016 (3) TMI 713 - CESTAT HYDERABAD

2016 (3) TMI 713 - CESTAT HYDERABAD - TMI - CENVAT Credit - eligibility of input services vis-a-vis manpower recruitment or supply agency service, renting of immovable properly services, telecommunication services, rent a cab services, etc. - Department denied credit on all input services availed - Held that:- the view of the department do not have nexus with the output services as it has denied credit on all input services availed. By denying credit on all the input services, it seems to appear .....

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herefore, by taking into account the judicial dispositions laid in the judgments in Coca Cola India Pvt.Ltd [2009 (8) TMI 50 - BOMBAY HIGH COURT], KPMG Vs CCE. [2013 (4) TMI 493 - CESTAT NEW DELHI] and CCE Vs HCL Technologies [2014 (11) TMI 663 - ALLAHABAD HIGH COURT], on the issues and the circular dated 19-01-2010, the CENVAT Credit is admissible on all the services. - Decided in favour of appellant with consequential relief - Appeal No. ST/20974/2014 - Dated:- 27-1-2016 - Sulekha Beevi, Membe .....

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ation under category of Information Technology Software Services(ITSS). On verification of the ST-3 Returns of the appellants for the period April, 2009 to September, 2009 and Oct. 2009 to March, 2010, it was observed that appellants have irregularly availed Cenvat credit on input services vis-a-vis manpower recruitment or supply agency service, renting of immovable properly services, telecommunication services, rent a cab services, etc. A show cause notice was issued proposing to deny the credi .....

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credit upholding the confirmation of demand and interest. The penalty of ₹ 5 lakhs imposed by original authority was reduced to ₹ 1 lakh. Being aggrieved by the said order the appellants have filed the present appeal. 2. On behalf of the appellant, the Learned consultant Sri Abishek Rastogi submitted a detailed table reflecting the input services, which was disallowed by the Commissioner(Appeals). The same is reproduced as below: S.No. Services Amount Details 1. Chartered Accountant .....

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catering Service 11,622 Rejected by com(A) Covered under Rule 6(5) 10. Erection, Commissioning & Installation Service 102,668 Rejected by com(A) Covered under Rule 6(5) 11 Management or business Consultancy Services 408,102 Rejected by com(A) Covered under Rule 6(5) 12. Rent-a-cab Service 75,684 Remanded by com(A) to verify facts 13. Renting of Immovable Property Service 158,800 Remanded by com(A) to verify invoices 14. Information Technology Software Service 3,605 Remanded by com(A) to ver .....

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due to inconsistencies by the department. Specifically included in input services 19 Courier Service 5,064 Remanded by Com(A) due to inconsistencies by the department. Total 1,593,439 3. The learned Consultant submitted that S.No.1 to 11 in the above table have been disallowed by the Commissioner (Appeals) by holding that these services do not have nexus with the output services provided by the appellant. He pointed out that the Commissioner (Appeals) in the impugned order has relied upon the de .....

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zuki Ltd. Vs CCS Delhi 2009 (240) ELT 641 (SC), wherein the Hon'ble Apex Court was considering the issue of credit on inputs and not input services. That therefore, the restriction of inputs is not applicable to input services. The services in S.No.12 to 15 has been remanded by the Commissioner (Appeals) for further verification of facts regarding the service as well as the invoices. The learned Consultant referred to the relevant paragraphs in the impugned order and submitted that, though t .....

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rcular No. 120/01/2010-ST dated 19-01-2010 was placed before me to contend that the Board has issued clarification regarding input services which are directly relatable to export business of BPOs/call centers. That the services stated in S.No.16 to 19 in the above table fall into the category clarified in para 3.1.2 of the above Circular dated 19-01-2010 and the denial of credit is unjustified. Winding up his arguments, he submitted that no interest is liable to be paid as the appellant is eligi .....

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d for this reason, some of the services have been remanded by the Commissioner. He pleaded that the appeal may be dismissed. 6. I have heard the rival submissions and perused the appeal papers. At the outset, it has to be stated that the period involved is prior to 01-04-2011 when the definition of input services had a wide ambit covering all most all services relating to business of manufacture/providing of output services. All the services listed in the above table have been covered by various .....

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tion was mainly admissibility of credit on inputs and not input services. The impugned services listed in the table above have been held to be eligible for credit in the judgment laid in Coca Cola India Pvt.Ltd 2009(242)ELT 168(Bom), KPMG Vs CCE. 2013-TIOL-761-CESTAT-DEL, CST, Bangalore Vs Mercedez Benz research & Development(P)Ltd 2013(30)STR 257(Tri.Bang), CCE Vs HCL Technologies(2014)52 Taxmann.com 393(Allahabad). 7. I am not able to endorse the view of the department that the impugned se .....

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