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2016 (9) TMI 540 - CESTAT CHENNAI

2016 (9) TMI 540 - CESTAT CHENNAI - TMI - Cenvat credit - Tour operator service - Service utilised for pick up and drop of the employees to the work place - Held that:- the main aim of cenvat credit scheme is to avoid the cascading effect of taxation i.e. to avoid imposition of tax on tax. The principle benefit intended through Cenvat Credit Scheme should not be lost sight of while interpreting the statutory provision. There is no doubt that the impugned services have been consumed by the appell .....

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th marketing and accordingly shall be eligible for refund. As long as the Travel Agency Service is not received for personal benefit of any employee but meant for travel of office personnel, credit is not deniable. This service is in connection with production, planning, import, marketing etc. Therefore, by following the decision of Hon'ble Gujarat High Court in the case of Principal Commissioner Vs Essar Oil Ltd. [2015 (12) TMI 1062 - GUJARAT HIGH COURT] the credit is allowable. - Cenvat cr .....

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input service i.e. used in or in relation to provision of output service and accordingly shall be entitled for refund. - Cenvat credit - Renting of Immovable property services - rented premise is used for the purpose of carrying on the business i.e. for providing the output service - Held that:- it is an undisputed fact that the appellants are engaged in providing output service namely online database access and retrieval services, and it is impossible for the appellants to provide the serv .....

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drasekhar, Advocate For the Appellant Shri S. Nagalingam, AC (AR) For the Respondent ORDER M/s.Olam Information Service Pvt Ltd., the appellants herein, are engaged in providing online information and database access and retrieval services and registered under the provisions of service tax law. 2. The appellant filed an application seeking refund of ₹ 48,89,322/- under rule 5 of the Cenvat Credit Rules,2004 for the period April 2011 to Sep 2011. The Dy. Commissioner of Service Tax vide OIO .....

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ur operator services and air ticketing agency services. The services are not used for providing output service but used by the staff which is a pre-requisite extended to the employees. Foreign exchange service The invoices are raised in the individuals name bearing their passport number. As the foreign exchange is obtained by the employees in their individual capacity, it is meant for their personal use and not for the company use and the same cannot be considered to have been used in rendering .....

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e. 07.07.2011. A sum of ₹ 65,699/- on the ground that the invoices have been addressed to the capital towers after the amendment of change of address to Ascends IT Park. Against the OIO, an appeal was preferred before the Commissioner (Appeals). The Commissioner (Appeals) has confirmed the OIO rejecting the refund except for allowing credit to the extent of ₹ 65,699/- on the ground that a substantial benefit cannot be denied as the appellant was rendering service from the said premis .....

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preme Court. 5. Aggrieved by the order of the Learned Commissioner(Appeals), the appellant has preferred an appeal before this Tribunal to the extent of ₹ 4,51,256/-. 6. Ms Radhika Chandrasekhar, Advocate, appearing for the Appellant re-iterated the grounds of appeal and submitted written submissions as to why refund needs to be allowed for the services. 7. Shri S. Nagalingam, A.C. (A.R) appearing for the Revenue re-iterated the Order in Appeal. 8. Heard both sides. The short issue to be d .....

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the Sundaram Brake linings case law is inapplicable since the decision in Maruti Suzuki is no longer a good law in view of the decision of the larger Bench of the Hon ble Supreme Court in the case of Ramala Sahkari Chini Mills Ltd vs. CCEx Meerut I reported in 2016 (334) ELT 3 (SC) and also the decision of this Tribunal in Sundaram Brake Linings is reversed by the Hon ble High Court of Madras in CMA No. 314/2011 dated 13.02.2015. 9. Now I take up the eligibility of each service in detail: 1) To .....

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alore - 2015 (40) STR 800 (Tri.-Bang.) b) Hindustan Coco Cola Beverages Pvt. Ltd. Vs CCE Nashik 2015 (38) STR 129 (Tri.-Mumbai) I find that the main aim of cenvat credit scheme is to avoid the cascading effect of taxation i.e. to avoid imposition of tax on tax. The principle benefit intended through Cenvat Credit Scheme should not be lost sight of while interpreting the statutory provision. There is no doubt that the impugned services have been consumed by the appellant during the course of thei .....

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utilised for booking the air tickets. The Appellant relied on the following judicial precedents: a) Megma Design Automation (I) Pvt. Ltd. Vs CST (2015) 40 STR 800 (Tri.-Bang.) b) Hindustan Coco Cola Beverages Pvt. Ltd. Vs CCE Nashik 2015 (38) STR 129 (Tri.-Mumbai) c) EXL Service.Com India Pvt Ltd vs. CCEx. & Cus. 2016 (43) STR 294 (Tri.-All.) I find that the services of the air travel agent was availed for making travel arrangements of employees to meet clients in connection with marketing .....

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Service It is submitted by appellant that FOREX was purchased and the same was given to the employees who travel outside India in order to execute their work. The services of Forex broker has been utilized for foreign exchange. The appellant relies upon the decision in the case of Megma Design Automation (I) Pvt. Ltd. Vs CST 2015 (40) str 800; Hindustan Coca Cola Beverages Pvt. Ltd. Vs CCE Nasik- 2015 (38) STR 129. I find force in argument of the appellant as the expenditure has been incurred b .....

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ing the output service and the same is not disputed. Initially, the office of the appellant was at Capital Towers, Kodambakkam and the same was shifted to Ascendas IT Park. The OIO rejects the refund on the ground that the place of operation was declared as Capital Towers, Kodambakkam High Road and the same was amended from 07.07.2011 to Ascendas IT Park and therefore not eligible to take credit. The appellant had entered into lease agreement on 11th October 2010 for a period of six years effect .....

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remises is essential for the nature of output service rendered by the appellant. Further she submitted that the appellant could perform their output service only by providing good infrastructure and good work space to install all electronic equipments & computers, allied equipments & gadgets and to accommodate the staff & employees. 12. It is an undisputed fact that the appellants are engaged in providing output service namely online database access and retrieval services, and it is .....

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