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2016 (44) S.T.R. 693 (Tri. - Hyd.)

IN THE CESTAT, REGIONAL BENCH, HYDERABAD
[COURT NO. I]
Ms. Sulekha Beevi, C.S., Member (J)
GE INDIA EXPORTS (P) LTD.
Versus
COMMISSIONER OF C. EX. & S.T., HYDERABAD-II
Final Order No. A/30282/2016, dated 29-4-2016 in Appeal No. ST/28026/2013
Cenvat credit - Input service - Telecommunication; Internet port charges;
Management/Business Consultants; Commercial Training/Coaching Services for
training employees to enhance their skill and ability in imparting output services;
Chartered Accountant Service for processing provident fund, TDS and filing other
statutory compliances; Scientific or Technical Consultancy Services for testing indoor
air quality to ensure safe and secure workplace; Management, Maintenance and Repair
Services for annual maintenance charges and other repair works done in premises -
Availed by 100% EOU registered under Software Technology Parks of India - HELD : All
these services are included in definition of input service - They were used by assessee
for providing output service - Hence, assessee was entitled of refund of their
accumulated credit - Rules 3 and 5 of Cenvat Credit Rules, 2004. [paras 4.2, 4.3, 4.4,
4.5, 6]
Cenvat credit - Input service - Invoice showing, it was minor work of cleaning
and remodeling chairs, but service provider had paid Service Tax under category of
Erection, Commissioning and Installation services - HELD : Assessee was entitled to
take credit of Service Tax - Rules 3 and 5 of Cenvat Credit Rules, 2004. [para 6]
Cenvat credit - Availment of - Input service invoice - Issued to unregistered
premises of assessee - Credit cannot be denied for this reason - There is no
requirement that premises of service recipient has to be registered - Rule 4A of
Service Tax Rules, 1994. [para 6]
Appeal partly allowed
CASE CITED
Commissioner v. Convergys India Pvt. Ltd. — 2009 (16) S.T.R. 198 (Tribunal) — Referred [Para 4.6]

DEPARTMENTAL CLARIFICATION CITED

C.B.E. & C. Circular dated, 19-1-2010................................................................................ [Para 4.6]

REPRESENTED BY : Shri Abhishek Rastogi, CA, for the Appellant.

Shri Rajesh Jacob, Asstt. Commissioner (AR), for the Respondent.

[Order]. - The appellant is aggrieved by the rejection of refund claim.

2. The appellant, M/s. GE India Exports (P) Ltd., is engaged in providing ‘Consultant Engineer Service’ and
‘Information Technology Software Services’ which are exported to entities located outside India. The appellant is 100%
EOU registered under Software Technology Parks of India (STPI) Scheme at Hyderabad and Bangalore. It is registered
with Service Tax Department under Centralised Registration. The appellant filed refund claim for the period October, 2011
to December, 2011 for an amount of Rs. 62,14,543/- with respect to the unutilized Cenvat credit of service tax paid on
various input services used for providing output services, in terms of Rule 5 of Cenvat Credit Rules, 2004 read with
Notification No. 5/2006-C.E. (N.T.), dated 14-3-2006.
3. The Assistant Commissioner after verification and processing sanctioned an amount of Rs. 54,50,771/- and
rejected refund claim to the tune of Rs. 7,36,855/-. The appellant filed an appeal before the Commissioner (Appeals) who
accepted the contentions raised by appellant, but upheld the original authority on some issues and rejected part of the
balance claim. Being aggrieved the appellant has filed the present appeal disputing the denial of refund/credit of Rs.
6,83,882/-. The learned consultant Shri Abhishek Rastogi submitted that out of Rs. 6,83,882/- for which the appeal has
been filed, the appellant is not contesting an amount of Rs. 4,669/-. Thus, the dispute in the appeal is limited to
Rs. 6,78,883/-. The appellant has submitted a table showing the details of the amount disallowed which is as under :-
Description Amount disallowed
(Rs.)
Input invoice addressed to electronic city 3,19,736
which is not a service tax registered premises

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The input services on which Cenvat availed 2,34,456

are not related to export of service
Input service credit availed on car parking 1,05,615
charges and maintenance charges
Housekeeping services on which Cenvat 19,406
availed are not related to export of output
services
Service Tax details not shown on the input 4,669
service
Total 6,83,882
4.1 The learned consultant submitted that one of the reason for rejecting the refund is that the input service
invoices were issued to the premises/address of the appellant which was unregistered. Cenvat credit of Rs. 3,19,736/- was
disallowed for this reason. The invoices were issued to the Bangalore premises by the service providers. This premises
was not registered with Service Tax Department. He referred to Rule 4A of Service Tax Rules, 1994 and argued that there
is no statutory obligation that the premises of the service recipient has to be registered and that such registered address
should be shown in the invoices. The said Rule states that the invoice should bear the service tax registration number of
the service provider. It is sufficient that the name, address details of service recipient is disclosed in the invoice.
4.2 Business Support Services and Business Auxiliary Services were availed for the cost sharing expenses/cross
charging of expenses towards Telecommunication, Internet port charges which are shared by group entities of GE. Such
expenses are already paid by the group entity and have been cross charged to the appellant which are reimbursable.
These services are highly essential for providing the output services.
4.3 Management or Business Consultants Service was availed as the appellant does not have enough expertise
in connection with the liaisoning with Revenue authorities in connection with direct and indirect taxes. These input services
are used by appellant in smooth liaisoning and is very much necessary for providing the output services.
4.4 Commercial Training or Coaching Services were used to train employees to enhance their skill and ability in
imparting the output services. Erection, Commissioning, Installation Service (Rs. 7,516/-) is used for doing small works of
fitting and renovation in the office premises. The service provider has paid the service tax under this category though the
work involves minor works like armrest reupholstery, chair shampio washing, service and fitting charges.
4.5 Chartered Accountant Service was availed for processing provident fund, TDS and filing other statutory
compliances. Scientific or Technical Consultancy Services were used to test the indoor air quality to ensure safe and
secure workplace. Management, Maintenance and Repair Services (Rs. 1,437/-) was used for annual maintenance
charges and other repair works done in the premises.
4.6 It was submitted that there is no dispute as to the credit availed by appellant. The appellant has been
disclosing the credit details in the returns. In Convergys India (P) Ltd. [2009 (92) RLT 1017 = 2009 (16) S.T.R. 198 (Tri.)], it
was observed that there cannot be two separate yardsticks for availing credit and refund of the same. This was clarified in
the C.B.E. & C. Circular dated 19-1-2010. He pleaded that the appeal may be allowed.
5. Against this, the learned AR Shri Rajesh Jacob reiterated the findings in the impugned order. He submitted that
the disallowance of credit is correct and proper.
6. I have heard the rival submissions. Major portion of the refund is denied for the reason that the invoice is issued
to the unregistered premises of the appellant. As per Rule 4A of Service Tax Rules, 1994, there is no requirement that the
premises of the service recipient has to be registered. Therefore, the denial of refund on this ground is unjustified. The
invoice with regard to Erection, Commissioning and Installation services shows that the woks done is minor work of
cleaning and remodeling chairs. The service provider has paid service tax under the category of Erection, Commissioning
and Installation services. All the other services detailed above and shown in the table are included in the definition of input
service. They have been used by the appellant for providing output service as explained by the learned consultant.
Therefore, I find that appellant is eligible for refund of the amount shown in the table except for the sum of Rs. 4,999/-.
7. In the result, the impugned order is set aside. The appeal is partly allowed in above terms with consequential
reliefs, if any.
(Pronounced in open Court on 29-4-2016)
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