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M/s D.E. Shaw India Software Pvt Ltd. Versus CCE, Hyderabad-II

2016 (9) TMI 686 - CESTAT HYDERABAD

Refund of Cenvat Credit - 100% EOU - nexus of input services with output services - Held that:- the ineligible credit has been disallowed twice, first by reducing the credit as such and second by applying the formula - Thus, there has been in a way application of the formula twice over. Identical issue was considered by the Tribunal in the case of CST; Mumbai-I Vs Global Market Center Private Ltd., [2015 (2) TMI 271 - CESTAT MUMBAI]. The Tribunal observed that the formula in the notification use .....

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the Service Tax Department. They filed refund claim for the quarter January, 2012 to March, 2012 for an amount of ₹ 19,83,533/- in respect of the service tax paid on various input services used for providing output services. The refund claim was filed under Rule 5 of the CENVAT Credit Rules, 2004 read with Notification No. 5/2006 CE (NT) dated 14.03.2006. After adjudication vide Order-in-Original dated 22.03.2012 the adjudicating authority granted refund for ₹ 15,68,941/-. The amount .....

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agent s service 42,781 Management, maintenance or repair services 1,29,370 Chartered Accountant s services 82,719 Commercial Training or Coaching Services & Convention Services 9,860 Management or business consultancy services 41,445 Total 3,06,175 3. It is submitted by Learned Counsel that air travel agent services were availed for the employee to attend business meetings abroad. The learned counsel has furnished the details of the office communication which shows that the employee had trav .....

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harges paid for the same premises. The rent amount and maintenance charges are shown separately in the invoices. The renting agreement includes maintenance charges also. This amount is seen to be part and parcel of the rent agreement. So denial of credit availed on service tax paid on maintenance charges, in my view is unjustified. It needs to be mentioned that the invoice in respect of maintenance charges includes maintenance charges for cafeteria also. The original authority having allowed ser .....

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part of the definition. Therefore rejection of refund stating that these services do not qualify as input service and are ineligible for credit is not justified. Management consultancy services were availed by appellant for the purpose of complying with statutory and legal requirement. These services are essential for the running of the establishment and therefore refund of the service tax paid on such services is eligible and is to be allowed. 4. The learned counsel for appellant has put forwa .....

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le services D) Total Turnover E) Total credit on input services taken F) Total unutilized credit on input services ₹ 574,293,757 - 39,685,035 613,978,792 6,071,093 1,983,533 2. Refund of input Service Credit under Rule 5 of the CENVAT Credit Rules, 2004 = E x A/D = 6071093 * (574293757/613978792) = ₹ 5,678,683/- 3. Amount of refund of input service tax credit is ₹ 19,83,533/- (unutilized credit or refund eligible as per Rule 5 whichever is lower) Thus, as per the formula the to .....

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