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2016 (11) TMI 521 - CESTAT MUMBAI

2016 (11) TMI 521 - CESTAT MUMBAI - TMI - Refund claim for unutilized input service credit under Rule 5 of Cenvat Credit Rules, 2004 read with Notification No. 5/2006-C.E.(NT) dated 14/3/2006 - input services - Event Management Services - Mandap Keeper Services - Health and Fitness Services - Pandal and Shamiana Contractor’s Services - whether the denial of refund on the ground that the said services are not input services, justified? - Held that: - these services are input services and have nex .....

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rent persons but it is to the appellant only therefore only because of the different name the Cevnat credit/refund cannot be denied. Similarly, invoices raised in the name of the Deutsche Bank cannot be held invalid as Deutsche Banch is not a different entity, it is a part and parcel of the appellant company only, therefore on invoice bearing the name of Deutsche Bank Cenvat credit as well as refund is admissible. Incomplete name and description of services appearing in invoices is clerical erro .....

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48/11, ST/89060 to 89070/13 - Order No. A/93040-93054/16/STB - Dated:- 7-10-2016 - Mr. Ramesh Nair, Member(Judicial) And Mr. C.J. Mathew, Member(Technical) Shri. Abhishek Rastogi, CA with Ms. Rashmi Deshpande, Advocate for the Assessee Shri. Roopam Kapoor, Commissioner(A.R.) with Shri. A.K. Goswami Addl. Coomissioner(A.R.) for the Revenue Per : Ramesh Nair The assessee are engaged in providing services such as function of maintaining static data filled with software(DB Control) i.e. data base of .....

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otification No. 5/2006-C.E.(NT) dated 14/3/2006. The adjudicating authority rejected claims on the ground that services on which Cevnat credit was availed and claimed as refund are not input services and nexus between said input services and output services is not established. Apart from above ground in respect of one of the refund claim for the period October, 2008 to March, 2009 was rejected also on the following grounds. (a) Invoices are not in the name of the DBOI Global Services Pvt Ltd. (b .....

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he invoices (i) Input invoices did not contain PAN based Registration number (j) No proper FIRC In addition to above grounds, there is a common issue involved in all the cases that there is computation error as prescribed formula was not applied correctly. On the above issues of the adjudicating authority, assesse filed appeals before Commissioner (Appeals) who partly allowed the refund and partly denied therefore assessee filed four appeals bearing no. ST/245-248/11 and Revenue also filed appea .....

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e department do not survive. As regard the party s appeals, he submits that refund claims are related to four services i.e. Event Management Services, Pandal and Shamiana Contractor s Services, Mandap Keeper s services, Health and Fitness Services. He submits that all these services are being used for function of the organization for providing output services. He further submits that these services for the earlier occasions, have been allowed as admissible input services and refund was granted w .....

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ts that regarding different name appeared on the input services invoices, this is due to the reason that earlier appellant company was operating in different name and subsequently it was amalgamated and renamed as DBOI Global Services Pvt Ltd therefore in certain cases invoices were received in the old name of the company but that does not make any difference as the entity remained the same. As regard the invoices showing the services rendered to Deutsche Bank, he submits that Deutsche Bank is n .....

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ue to some clerical error in the invoices regarding the description of the services, will not amount to disallowance of the Cenvat credit and consequential refund. As regard the services rendered to the SEZ unit, he submits that SEZ unit belong to the appellant company only and that is also engaged in providing services which were exported therefore refund even in case of services rendered to the SEZ is admissible for the refund. Some invoices were raised in the name of the Deutsche Assets Manag .....

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ed in the export services. The registration is not the sole criteria for refund under Rule 5. The discrepancies raised such as PAN based registered number is not appearing in the invoices, he submits that it is department, who has to issue registration, in certain cases PAN registration is not available but services provider are registered, in such case, only for want of PAN based registration Cenvat credit on the recipient end cannot be denied. As regard the issue on the dispute of improper FIR .....

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appeals do not have direct role in providing output service. He submit that unlike input where connotation input is used for manufacture whether directly or indirectly , in or in relation to manufacture of final product . In case of input service the word directly or indirectly and in or in relation are missing therefore scope of input service is limited, that shows if the services are directly used in providing output service then only it will be considered as input service which have used by t .....

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) while allowing the Cenvat credit and refund considered the use of the said services as under: (a) Commercial Coaching or Training Services: The appellant has availed these services for imparting knowledge to its employees and to keep them updated. These trainings inter alia include providing trainings on Microsoft office, investment banking SOX and Basel II norms, US GAAP and IFRS etc. Updating/enhancing employee s knowledge is key to success of a business organization. Further, coaching and t .....

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these services for courier of various business documents and parcels. Timely exchange of Business documents is essential for smooth functioning of the business. Further courier services used for domestic or international couriers is not material because of the following: # Credit of domestic/international couriers is admissible and unutilized portion of credit so availed is claimed as refund. Furthermore, the CBEC Circular has clarified that courier services satisfies the eligibility test for d .....

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res cabs to pick up its employees from their residence and drop them back. Such services are essential for employees securities who report/ leave from office at odd hours. Further the CBEC Circular has clarified that rent-a-cab services satisfies the eligibility test for determining the nexus of input services with out put services. (f) Advertising Agency s Services: The appellant has availed these services for displaying banners/ hoardings etc. in its business premises to keep the employees aw .....

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, outrage, unusual events etc. and take immediate steps/ initiate backup plant to provide uninterrupted services to its clients. Further, the appellant is engaged in the activity of providing support services to its clients located all over the world. Therefore, it is imperative for the appellant to be constantly updated with news and events happening all over the world. (i) Cargo Handling Services: The appellant has availed these services for lading and unloading of the equipments/assets/goods .....

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EC circular has clarified that general insurance services satisfies the eligibility test for determining the nexus of input services with output services. (k) Supply of tangible goods services: The appellant has availed these services for hiring of certain electronic and non electronic appliance/equipments(including vending machines for food) in order to provide their out put services efficiently. (l) Insurance Auxiliary Services: Under Section 65(55) of the Finance Act, 1994 "insurance aux .....

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cing these insurance policies, the appellant availed services of an insurance agent. (m) Outdoor caterer s Services: The appellant provides service to its clients located in foreign countries. Due to different time zones, services are provided by the appellant round the clock and therefore, the employees are required to work on shift basis. The appellant provides food and snacks to its employees since there is no such facility available in the vicinity where the employees can eat food and bring .....

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ry enactments. Further, these services are also availed for storage of belongings/ goods of the employees relocated for the purpose of provision of output services. (o) Video Production Agency Services: The service relating to video tape production is availed by the appellant to facilitate recording of business presentations, business events such as induction programme, training etc. from a professional videographer on a CD. Appellant uses these CD s to display the presentation to its employees .....

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part training to its employees to train them and to keep them updated. These training are either imparted in-house or at an off the site location. In order to drop the employees at the training location the appellant has availed these services of tour operators. From the above justification, we observed that as per the nature and use of the services there is no doubt that all the services were essential services and used for office of the service provider for the purpose of providing Business Su .....

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s. We find for the purpose of providing output service, it was held to be admissible input services in the various judgments. Use of the services and relevant judgments under which these services were considered as input services are given below: 1 Event Management Services DBOI appointed event managers to manage its business events such as annual offsite to discuss company s performance, targets and future with its employees, alongwith cultural events. These business events are essential to kee .....

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td Vs. Commissioner[2015 (39) STR 1027] 2 Mandap Keeper Services DBOI availed the mandap keeper s services to conduct various official or business functions. Therefore, these services are covered under the activities relating to business and qualify as input service as defined under CCR. Thus, the refund of the CENVAT credit availed on such services is admissible. 1. Endurance Technologies Pvt Ltd Vs. Commissioner[2013(32) STR 95] 2. Idea Cellular Ltd Vs. Commissioner [2011(22) STR 450 3. Accent .....

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t Ltd[2015(38) STR 700] 4. Pandal and Shamiana Contractor s Services DBOI used the services of pandal or shamiana contractor s to organise official, social or business function. Therefore, these services are covered under the activities relating to business and qualify as input service as defined under CCR. Thus, the refund of the CENVAT credit availed on such services is admissible. 1.H.E.G. Ltd Vs. Commissioner[2009 23 STT 157] 2. Commissioner Vs. Ford Business Services Centre Pvt Ltd[2015(38) .....

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