CESTAT rules in favour of IT Co. (assessee), allows refund of unutilized service tax credit in respect of (i) manpower recruitment or supply agency, (ii) cleaning, (iii) renting of immovable property, (iv) club or association, (v) commercial training or coaching, (vi) courier, (vii) Customs House Agents, (viii) management, maintenance or repair, (ix) telecommunication and (x) works contract services post April 2011;
Rejects Revenue’s stand that aforesaid services have no nexus with Information Technology Software Services exported by assessee and hence, do not qualify as “input services”; Notes inter alia that membership in Associations like American Chamber of Commerce in India augments business of organization and same not being for personal use / consumption of any employee, would not fall in exclusion portion of “input service” definition;
Also, though invoices classified activities like fixation of doors, locks, glass windows & polishing as ‘works contract services’, they were infact used for renovation, repair of premises and hence, would qualify as “input services”; Accepts assessee’s reliance on SC Larger Bench decision in Ramala Sahkari Chini Mills Ltd, while setting aside appellate order :Mumbai CESTAT
CESTAT : Allows credit refund inter-alia of office renovation works, Association membership post 2011
Published On - June 15, 2016
