TMI Blog2018 (5) TMI 559X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of “input service‟ - refund allowed. Out of Scope Charges - Held that: - these charges are in relation to building maintenance and repair service, which are also essential for rendering the software services and therefore, they are rightly classifiable as “input service‟ - refund allowed. Appeal allowed - decided in favor of appellant. - ST/21584, 21585/2017 - Final Order No. 20578 - 20579 / 2018 - Dated:- 16-4-2018 - Shri S. S. Garg, Judicial Member Mr. Deepak Kumar Jain, Advocate For the Appellant Mr. Madhupsharan, AR For the Respondent ORDER Per : S. S. Garg Appellants have files these two appeals directed against the impugned order dated 4.8.2017 passed by Commissioner (A) whereby the Commi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lso allowed the refund partially and aggrieved by the Order of the Commissioner (A), the appellant has filed these two appeals against the rejection of refund on two input services viz., Diesel Consumption Charges and Out of Scope Charges under the heading Management, Maintenance or Repair Service . 3. Heard both the parties and perused the records. 4. Learned consultant submitted that the impugned order is not sustainable in law as the same has been passed without properly appreciating the nature of input services involved. He further submitted that both the authorities has rejected the input tax credit for a value of ₹ 5,63,201/- in both the appeals considering that the input services availed by the appellant company under th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cope expenses are in the nature of reimbursement of expenses incurred by the service provider which should ideally incurred by the appellant-company. He further submitted that as per Section 67, these reimbursements needs to be included in gross amount charged for collecting service tax. In fact, these out of scope charges are towards building maintenance. It is his further submission that the definition of input service‟ as provided in Rule 2(l) of CENVAT Credit Rules has been widely interpreted by various judicial decisions and these two services on which the refund has been rejected fall in the definition of input service‟. In support of this submission, he relied upon the following decisions: Finolex Industries Ltd. vs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Diesel Consumption Charges‟ is considered as inputs‟ then the service tax would not have been collected; in that case, the duty would have been collected. Further, I find that the charges in the case of Out of Scope Charges‟ are in relation to building maintenance and repair service, which are also essential for rendering the software services and therefore, they are rightly classifiable as input service‟. Section 67 specifically mentions that all reimbursements shall be included in the gross amount charged for collecting service tax and in my view, Out of Scope Charges‟ are in relation to building maintenance and falls under the definition of input service‟. Therefore, in view of my discussio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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