CESTAT allows refund under Rule 5 of CENVAT Credit Rules, 2004 (CCR) of various services such as event management, convention, sponsorship, works contract, business auxiliary and training, It holds that “any service used for providing output service is admissible input service”, falling within ambit of ‘input service’ as defined under Rule 2(l).
CESTAT Rejected Revenue’s plea that post April 2011, specific exclusions were brought to ‘input service’ definition and term “activities related to business” was removed, CESTAT explains that assessee is exclusively an output service provider and all services are invariably required by it to run the entire business.
It Allows credit of ‘works contract’ services used in maintenance related work, states that said services are not used for construction or execution of works contract relating to building or civil structure or laying foundation or making structural support for capital goods, therefore they fall outside exclusion clause.
Moreover, It holds that refund claim cannot be denied merely for the reason that same was filed for 6 months instead of a quarter, there is no violation of any condition stipulated in Notification No. 27/12-CE (NT) as long as refund is filed within overall 1 year period from relevant date.
In relation to debiting of CENVAT credit account, it was observed that since the assessee had done so subsequently, which was also reflected in the returns, it could not be said that the amount had not been debited at all. CESTAT remarked, “purpose of debiting amount is that the said amount is being refunded therefore it is not mandatory that amount should be debited immediately at the time of filing refund.
While allowing refund in respect of credit taken on invoices for out-of-pocket expenses, CESTAT states that “there is no difference between the service tax paid on the service bills and out of pocket expenses claimed in separate bill” both are in the nature of service charges and liable to service tax. Therefore merely because term out of pocket expenses, cenvat credit and consequently refund cannot be denied.”
Citation: [ TS-260-CESTAT-2018-ST ]