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TMI Blog2017 (1) TMI 658X X X X Extracts X X X X X X X X Extracts X X X X ..... port services produced, or input service not having nexus with the output service. However, with respect to input services like Information Technology Service, Management Maintenance and Repair Services, Manpower Recruitment Agency's Services and Renting of Immovable Property Services, refund of part of the input service credit has been disallowed without recording reasons. 2. I find that during the period January, 2012 to March, 2012, the following relevant portion of the definition of input service vide Rule 2(l) of the Cenvat Credit Rules, 2004, as amended w.e.f. 1-4-2011, was applicable to their case :- (l) 'input service' means any service, - (i) used by the provider of output service for providing an output service; .... ... ... 3. The summary of disallowances as listed out by the counsel in the appeal is as under :- Sl. No. Particulars Refund rejected (Rs.) i Air Travel Agent's Services 28,664 ii Banking and Other Financial Services 12,102 iii Chartered Accountant's Services 5,252 iv Commercial Training or Coaching Services 11,192 v Courier Services 4,695 vi Custom House Agent's Services 1,16,437 vii Information Technology ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... adverted that these services were received by them in connection with their audit and issue of certificate by practicing Chartered Accountant and that these services will fall under the ambit of activities like accounting and audit which form part of the inclusive portion of the definition of 'input service' at Rules 2(l) of the Cenvat Credit Rules, 2004. I find merit in the submissions of the appellant and in consequence, I hold that the denial of the refund for this input service is not justifiable. iv. Commercial Training or Coaching Services I find that the lower authority while conceding that the appellant is eligible for claiming refund on this service, has however disallowed an amount of Rs. 11,192/- with regard to training on communication skill and conference. The appellant has adverted that the input service in this case pertains to participation fees paid for attending business conference/seminar and business communication training services and that input services like coaching and training exhibition are part of input service. In the circumstances, I hold that the denial of the refund for this input service is therefore not justifiable. v. Courier Servic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fiable. viii. Management, Maintenance and Repair Services The lower authority has disallowed refund pertaining to premises related to maintenance, Xerox machine maintenance, Fire alarm maintenance etc. on the ground that same do not impact the quality of the output service. The appellant has adverted that these services are consumed essentially in relation to day-to-day function of the office including security, cleaning and housekeeping services and an indispensable services being directly connected to office premises. They have relied upon the ratio of Tribunal's order in the case of CCE v. CE Gloves India Ltd. [2013-TIOL-1975-CESTAT-BANG.]. In the circumstances, I find merit in the above submission and I hold that the denial of the refund for this input service is not justifiable. ix. Management or Business Consultant's Services The lower authority while conceding that these services are covered under the definition of input service has however disallowed an amount of Rs. 2,00,295/- in respect of invoices on the ground that the related invoices were towards fees for statutory compliance and towards pay roll processing. The appellant has adverted that these servi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the output services is devoid of merit. In the instant case, I find that the appellants were a provider of output service under the category of Information Technology from their premises at Madhapur, Hyderabad. It is not disputed that the said output service was provided by the appellant from their said premises which had been leased out by them from M/s. Cyberpearl Information Technology Park Private Ltd., the lessor and the provider of both the services renting of immovable property service as well as the renting out of fitouts (interiors and improvements) as per the list of furniture and fittings attached in the Second Schedule to the Deed of Lease. There can be no dispute that the aforesaid fitouts are used by the Information Technology and Software Service providers such as this appellant for housing their employees and equipment, without which they cannot provide the export service - they set out to do. It is also noted that in this case, the service pertaining to renting of fitouts will have to be necessarily considered as a "naturally bundled services" with the service of renting of immovable property, for the purposes of Section 66F of the Finance Act, 1994. In view ..... X X X X Extracts X X X X X X X X Extracts X X X X
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