TMI Blog2017 (8) TMI 1053X X X X Extracts X X X X X X X X Extracts X X X X ..... ted. Refund on Information Technology services - denied on the ground that the same were used for preparation of conveyance allowance chart of the employees and not in connection with the output service - Held that: - As per the appellant they updated and installed new software only for the efficient working and to improve the administrative efficiency. In that process the upgradation of pay roll of the employees is an effort for the better provision of output service. The Board's Circular dated 19.01.2010 was observed that whatever service improves the quality of output service, the same has to be held as availed in connection with the output service - there is no justifiable reason to deny credit. Refund on delegate fees paid by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iled input service credit on various services which were stated to be used in rendering the above output services. The appellant had filed a refund claim for ₹ 41,23,046/- under Rule 5 of the Cenvat Credit Rules, 2004 on the ground that the credit involved on the said input services could not be utilized by them as the entire output service was exported. After due process of law, the Department vide the impugned order had sanctioned an amount of refund to the tune of ₹ 35,73,093/- and rejected the balance amount of ₹ 5,49,953/-. The rejected amount pertained to Cenvat credit involved on Renting of Immovable Property, certain invoices pertaining to Management Consultancy, Manpower supply and Information Technology (Software ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rvice tax cannot be appreciated. Had it been paid by the Director in her individual capacity, the same would still be available as a credit to the appellant. Revenue at the time of receipt of service tax from the appellant never objected and accepted such service tax deposited by them. As such, I find that the denial of refund to the assesse, under Rule 5 of CCR, 04 is not justified. In as much as admittedly such service was used by the appellant in relation to their business activity and satisfied the essential requirement of use for rendering output service. 5. A part of the refund stands denied in respect of Information Technology services on the ground that the same were used for preparation of conveyance allowance chart of the emplo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lso Manpower Recruitment Services and Technical Inspection and Certification Services stand denied on the ground that the same cannot be held to be cenvatable input services. I find that all the said services are connected with the business of the appellant and have to be held as having been used in relation to their business. The same has been subject matter in a number of Tribunal decisions holding that these services have nexus to the business activities. Accordingly, I find no justification for denial of the refund. 8. In view of the foregoing discussions, I set aside the impugned order and allow the appeal with consequential relief to the appellant. (Order pronounced in the open Court on 10/8/17) - - TaxTMI - TMITax - Serv ..... X X X X Extracts X X X X X X X X Extracts X X X X
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