TMI Blog2016 (9) TMI 540X X X X Extracts X X X X X X X X Extracts X X X X ..... t on tour operator service is allowed. Cenvat credit - Travel agency service - rendering of SAP implementation and support service to parent and subsidiary companies located outside India - Held that:- the services of the air travel agent was availed for making travel arrangements of employees to meet clients in connection with 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. [2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6 - Dated:- 9-9-2016 - Shri P.K.Choudhary, Judicial Member Ms. Radhika Chandrasekhar, 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 no.51/2012 dtd.27.07.2012 sanctioned the refund to the extent of ₹ 43,72,367/- The OIO rejected the refund claim of ₹ 5,16,061/- being the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 premises. 4. The Commissioner (Appeals) has rejected the refund claim on the following grounds :- a) That in the case of service providers only those services that are used directly for providing taxable services qualify as input service. b) That the input service should be directly used for providing taxable service and not in relation to providing output service a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... am 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) Tour Operator Service As regards tour operator service is concerned, I find that the service have been utilised for pick up and drop of the employees to the work place. The Appellant have submitted that being a service industry and employees being a key source it is the obligation of the Appellant to provide pick up and drop facilities to the employees. In support of their argument, the Appellant have relied on the following judicial precedents: a) Megma Design Automation (I) Pvt. Ltd. Vs CST Bangalore - 2015 (40) STR 800 (Tri.-Bang.) b) Hindustan Coco Cola Bever ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ong 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. The Hon'ble Gujarat High Court in the case of Principal Commissioner Vs Essar Oil Ltd. (supra) has allowed credit on this service. Following the very same ratio, I hold that credit is allowable. 3) Foreign Exchange 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 Desig ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ltd. With regard to the eligibility of credit availed for the renting of the immovable property, it was submitted by the appellant that without a building the appellant cannot perform their job and the building premises 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 impossible for the appellants to provide th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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