TMI Blog2019 (6) TMI 568X X X X Extracts X X X X X X X X Extracts X X X X ..... le in good condition is very essential for providing the courier service by the Appellant because if the vehicles are in good conditions only then the appellant can provide the satisfactory and efficient services to its clients and therefore it has nexus with the output service. The Appellant has also paid the service tax charged on the invoice to the vendor and this has not been disputed - credit allowed. CENVAT credit - Reimbursement of expenses Such as mobile bills, telephone bills - rejection on the ground that Telephone not installed at appellant s premises but of PAFEX and used by them - HELD THAT:- It can be said that the aforesaid services has been used for business activity of the appellant. These services are input service used for output service, in particular, when the Revenue could not establish with any evidence that the octroi/telephone/mobile has been used by the said M/s. Pafex for its personal use - credit allowed. CENVAT Credit - Reimbursement charges paid to M/s Jeena Co. - denial on account of nexus - HELD THAT:- The customs clearance services provided by FedEx Express is directly connected with the courier services of import and export shipments provid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Remarks 1 Delhi Int. airport Demurrage Charges 20,162 It is not input service for the output service 2 M/s Cambata Aviation P. Ltd. Repair Maintenance 2,472 Vehicle not owned by the appellant 3 M/s Prakash Air Freight P. Ltd. (PAFEX) Reimbursement of expenses Such as mobile bills, telephone bills 14,251 Telephone not installed at appellant s premises but of PAFEX and used by them. 4 Fedex Express No particular category of service mentioned 12,32,083 Reimbursement charges paid to M/s Jeena Co. No nexus to output service Total 12,68,968 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is provided by Jeena Co. to FedEx Express. 4. The definition of input service specifically provides that Input Service means any service used by a provider of taxable service for providing an output service. It is not disputed that as per the agreement between the Appellant and FedEx Express, for high value shipments FedEx Express would charge the Appellant the costs incurred by it plus a mark up on the costs incurred. The relevant clause of the aforesaid agreement is extracted as under:- Appendix to Customs Clearance Service Agreement dated September 1, 2005 Pricing Structure Based on categories as per Indian Customs Act, 1962 Xxx xxx xxx 4. In addition to above, in case of High Value Clearance, the Service Provider shall charge to the Service Recipient all the cost incurred by it plus a mark up of 9% of such cost (excluding third part cost). Further Service Provider shall recover at Actuals all the Third party cost incurred by it on Customs Clearance of High Value Packages. 5. The said reimbursement has been denied to the Appellant since as per revenue FedEx Express ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erely because the invoice of FedEx Express recorded that the charges are recovered as reimbursement charges of Jeena Co., it does not take away the fact that it is essentially the consideration for the customs clearance services provided by FedEx Express through Jeena Co. to the Appellant. 6. So far as the amount of ₹ 2472/- towards Repair and Maintenance of Vehicle is concerned, admittedly the appellant are not owner of those vehicles. It is rejected on the ground that no evidence has been produced to show that the onus to repair the hired vehicles is on the appellant. To keep the vehicle in good condition is very essential for providing the courier service by the Appellant because if the vehicles are in good conditions only then the appellant can provide the satisfactory and efficient services to its clients and therefore it has nexus with the output service. The Appellant has also paid the service tax charged on the invoice to the vendor and this has not been disputed. Therefore the Cenvat credit on it is available to the Appellant. 7. So far as the Cenvat credit amount of ₹ 14,251/- on reimbursement of expenses such as obtroi, mob ..... X X X X Extracts X X X X X X X X Extracts X X X X
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