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2016 (6) TMI 679 - CESTAT HYDERABAD

2016 (6) TMI 679 - CESTAT HYDERABAD - 2016 (44) S.T.R. 628 (Tri. - Hyd.) - Refund of cenvat credit - Rule 5 of CENVAT Credit Rules read with Notification No.5/2006-CE(NT) dt. 14/03/2006 - The refund of credit with regard to service tax paid on Telecommunication services, Management, Maintenance or Repair Services, Internet telecommunication service, Security Agency Service, Manpower Recruitment Service, Chartered Accountant Service, cleaning & housekeeping services and Clearing and Forwarding Se .....

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se or consumption of an employee. Therefore in my view, these services are eligible for credit/refund. - The rent payable for premises is split as rent amount for premises and common area maintenance charges. Both these fall within the main category of renting of immovable property. Undisputedly the issue has been reconsidered in the de novo proceedings. Hence the claim in this regard is held to be inadmissible. - Appellant is eligible for refund in regard to services except common area .....

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ants are engaged in rendering Business Processing Outsourcing (BPO) / call centre services through voice, chat and E-mail channels using Internet and Broad Band facilities to the end customers of their client (Knoah Solution Inc. USA) located in United States of America. They availed various input services for providing the output services which were exported. The appellants filed a refund claim for the unutilized CENVAT credit of ₹ 13,80,839/- for the period October 2011 to December 2011. .....

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vice and directed the lower authority to verify and grant the benefit, if eligible. The refund of credit with regard to service tax paid on Telecommunication services, Management, Maintenance or Repair Services, Internet telecommunication service, Security Agency Service, Manpower Recruitment Service, Chartered Accountant Service, cleaning & housekeeping services and Clearing and Forwarding Service were denied holding that the appellant has failed to establish the nexus of these input servic .....

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r Rule 5 of CENVAT Credit Rules, 2004 read with Notification No.5/2006-CE(NT) dt. 14/03/2006. It is submitted that they filed true copies of FIRCs along with the application of refund for the period from July 2011 to September 2011 in Form A, co-relating the invoice No.4/2011-12 dated 31/07/2011, 05/2011-12 dated 31/08/2011 and 6/2011-12 dated 30/09/2011 to the relevant FIRCs. They also furnished a statement certified by Bank towards the receipt of the amount against the invoices raised for expo .....

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on ble Apex Court rendered in Maruti Suzuki Ltd. Vs. CCE, Delhi-III [2009(240) ELT 641 (SC)]. In the said case, the Hon ble Court discussed the admissibility of credit on inputs. The learned counsel for appellant argued that the level of nexus required in the case of input service is lower than that of inputs. Further the said view was referred to Larger Bench of Supreme Court and by judgment rendered in the case of Ramala Sahkari Chini Mills Ltd., UP Vs. CCE, Meerut-I [2016-TIOL-20-SC-CX-LB], t .....

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ervices which would be necessary for providing output service efficiently by BPO. These services are renting of premises, right to use software, maintenance and repair of equipment, telecommunication services, outdoor catering, rent-a-cab used for transportation of employees, manpower recruitment services etc. It has to be borne in mind that the circular was issued prior to the amendment brought forth to the definition of input services . After 01/04/2011, the services like outdoor catering, ren .....

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rvices used in relation to modernisation, 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, accounting, auditing, financing, recruitment and quality control, coaching and training, computer networking, credit rating, share registry, security, business exhibition, legal services, inward transportation of inputs or .....

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ified services; (B) specified in sub-clauses(d), (o), (zo) and (zzzzj) of clause (105) of Section 65 of the Finance Act, insofar as they relate to a motor vehicle except when used for the provision of taxable services for which the credit on motor vehicle is available as capital goods; or (C) such as those provided in relation to outdoor catering, beauty treatment, health services, cosmetic and plastic surgery, membership of a club, health and fitness centre, life insurance, health insurance and .....

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ppointment. I am of the view that these services are specifically included in the definition of input service and that the denial of refund is against law. 2) Renovation works: (Rs.3,06,989/-) It is submitted that the renovation of interior of the premises from where the output services are provided was done by M/s. Trends Interior Group. Ceiling work, painting work, flooring works, glass work etc. was done for upkeep of good interior of the office. I find that services of renovation / moderniza .....

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for credit. 4) ISMS certification & quality control service: (Rs.60,188/-) It is submitted by the appellant that clients give preference based on ISMS / ISO certification and audit reports quality. This is akin to credit rating and the services were availed from M/s. TUV Rheinland (India) (P) Ltd. I am satisfied that such services availed by appellant qualify as input services and credit is admissible. 5) Security Agency Services: (Rs.63,010/-) The learned counsel submitted that the appellan .....

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egal Services (Rs.1854/-) These services were utilized for compliance of audit and legal procedures. Appellants have incurred expenses for filing refund claim and for representing them before various authorities. I find that refund of credit of service tax paid on these services is to be allowed. 8) AMC for Xerox / printing machine: (Rs.3959/-) The services of maintenance of Xerox / printing machine was essential for office purposes to take copies of documents. I find that credit on these servic .....

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credit is admissible. 10) Clearing & Forwarding Services: (Rs.2,275/-) The learned counsel submitted that these services were availed for import of computers which are used for providing output services. I find that these services qualify as input service and credit is admissible. 11) House Keeping (Rs.56,768/-) and Cleaning (Rs.5,495/-) The learned counsel for appellant submitted that these services were availed for ensuring a hygienic premises where the vast number of employees work. The .....

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