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[Cites 33, Cited by 0]

Custom, Excise & Service Tax Tribunal

Genpact India Private Limited vs Delhi-Iv on 13 February, 2026

CUSTOMS, EXCISE AND SERVICE TAX APPELLATE TRIBUNAL
                    CHANDIGARH

                     REGIONAL BENCH - COURT NO. I


                Service Tax Appeal No. 51892 of 2015

 [Arising out of Order-in-Appeal No. 28/ST/APPEAL-II/SM/GGN/2014-15 dated
 17.02.2015 passed by the Commissioner (Appeals-II), Service Tax, Gurgaon]



 M/s Genpact India Private Limited                        ......Appellant
 GE Towers, Sector 53, DLF City,
 Phase V, Gurugram, Haryana 122002

                                 VERSUS

 Commissioner of Service Tax, Delhi-IV                  ......Respondent

Plot No. 36-37, Sector 32, Gurugram, Haryana 122001 APPEARANCE:

Shri Prasad Paranjape and Shri Aditya Joglekar, Advocates for the Appellant Shri Aniram Meena and Shri Shantanu Kumar Meena, Authorized Representatives for the Respondent CORAM: HON'BLE MR. S. S. GARG, MEMBER (JUDICIAL) HON'BLE MR. P. ANJANI KUMAR, MEMBER (TECHNICAL) FINAL ORDER NO. 60149/2026 DATE OF HEARING: 16.10.2025 DATE OF DECISION: 13.02.2026 S. S. GARG :
The present appeal is directed against the impugned order dated 17.02.2015 passed by the Commissioner (Appeals), whereby the learned Commissioner (Appeals) has upheld the Order-in-Original dated 12.05.2014 by upholding the rejection of refund; the details of refund rejected are given herein below in tabular form:
2 ST/51892/2015 Sr. Grounds Amount (Rs.) No.
1. Alleged absence of Nexus 99,18,299/-
2. Input Service invoices not bearing Service Tax 1,57,753/-

Registration Number

3. Input Service invoices not bearing PAN based 3,42,308/-

Service Tax Registration Number

4. Input Service invoices not issued on the registered 2,30,241/-

premises Total 1,06,48,601/-

2. Briefly stated facts of the present case are that the Appellant are primarily involved in the provision of various back-end services in the nature of call centre services, back office management, IT help- desk services, collectively called as "BPO Services". The Appellant have entered into a Master Services Sub-Contracting Agreement with Genpact International, Hungary Branch located outside India. Majority of the services provided by the Appellant are exported outside India on behalf of its parent entity located outside India and some portion of services are provided directly to the customers located in India. The Appellant have classified their services under taxable category of 'Business Auxiliary Services' under Section 65(1) read with Section 65(105)(zzb) of the Finance Act, 1994. It is pertinent to note that there is no dispute with respect to the classification adopted by the Appellant as also with respect to the services provided by the Appellant to their overseas entity qualifying as export under Export of Services Rules, 2005. Since majority of the services rendered by the Appellant qualify as export, the CENVAT credit availed by the Appellant on various input services remained unutilized and in terms of Rule 5 of the CENVAT Credit Rules, the 3 ST/51892/2015 Appellant filed refund claim of such unutilized credit. No objection was raised by the department with respect to eligibility of such CENVAT credit when availed and which remained unutilized due to export nature of majority of output services provided by the Appellant. The Appellant filed refund claim which was partly allowed and partly rejected by the Original Authority vide Order-in-Original dated 12.05.2014. Aggrieved by the Order-in-Original, to the extent refund was denied, the Appellant filed appeal before the Commissioner (Appeals), who vide the impugned Order-in-Appeal, has upheld the rejection of the refund. Hence, the present appeal.

3. Heard both the sides and perused the material on records.

4. The learned Counsel for the Appellant submits that the impugned order is not sustainable in law and is liable to be set aside as the same has been passed without properly appreciating the facts and the law, and binding judicial precedents including the decision of this Tribunal in Appellant's own case [vide Final Order No. 60766- 60769/2025 dated 09.07.2025].

4.1 The learned Counsel further submits that all the input services, for which refund has been rejected, are used by the Appellant for provision of output services and these services are covered within the definition of 'input services' as defined in the CENVAT Credit Rules, 2004. He further submits that the Appellant fulfil all the conditions of availing CENVAT credit and accordingly, are eligible for the same. He also submits that the Appellant have not been questioned on the correctness or entitlement of CENVAT credit when availed by them 4 ST/51892/2015 and declared in the respective returns and further, no proceedings were initiated against the Appellant under Rule 14 of CENVAT Credit Rules, 2004 for recovery of CENVAT credit which remained unutilized and was sought to be refunded due to export nature of output services provided by the Appellant.

4.2 The learned Counsel further relies on the Circular No. 120/01/2010-ST dated 19.01.2010, which inter alia clarifies that there cannot be two different yard sticks, i.e. one for determining the eligibility of CENVAT credit and the other for determining the eligibility of refund; in other words, once credit when availed was not objected by the department, the same cannot be challenged during the refund processing stage.

4.3 The learned Counsel further submits that it is not in dispute that the services provided by the Appellant qualify as 'export' and the Appellant have fulfilled all other conditions of eligibility for refund such as limitation, receipt of foreign exchange. 4.4 The learned Counsel further submits that this Tribunal in Appellant's own case [vide Final Order No. 60766-60769/2025 dated 09.07.2025] has held that credit if not objected at the stage of availment, the same cannot be challenged during the refund proceeding stage and the refund should be granted without raising a fresh challenge to the admissibility of credit. He also relies on the following decisions:

Bharat Sanchar Nigam Limited vs. CCE & ST, Chandigarh-I - (2024) 24 Centax 131 (Tri. Chan.)

5 ST/51892/2015  Qualcomm India Pvt. Ltd. vs. Commissioner of Customs and Central Excise, Hyderabad-IV - 2020 (43) GSTL 402 (Tri. Hyd.), affirmed by Telangana High Court - Commissioner of Customs and Central Excise, Hyderabad-IV vs. Qualcomm India Pvt. Ltd. - 2021- TIOL-2305-HC Telangana-ST  BNP Paribas India Solutions Ltd. vs. Commr. of CGST, Mumbai East - 2022 (58) G.S.T.L. 539 (Tri. Mumbai)  ADP Pvt. Ltd. vs. Commissioner of Central Tax, Hyderabad-II - 2024 (9) TMI 925 (Tri. Hyd.) 4.5 As regard the issue on merits, the learned Counsel submits that all the services, on which CENVAT credit has been denied, have been held to be 'input services' in various decisions passed by the Tribunal as well as by the High Courts. He places reliance on the following decisions:

 Adani Port and Special Economic Zone Ltd vs. CST - 2016 (42) STR 1010 (Tri. Ahmd.)  Adani Port and Special Economic Zone Ltd vs. CST - 2016 (42) STR 1010 (Tri. Ahmd.) Utopia India Pvt Ltd vs. CST, Bangalore - 2011 (23) STR 25 (Tri. Bang.)  Tata Teleservices (Maharashtra) Ltd vs. CST - 2024 (3) TMI 1407 CESTAT MUMBAI LB  Tata Advanced Materials Ltd vs. CCE & ST - 2017 (7) TMI 57 CESTAT Bangalore  24/7 Customer Pvt. Ltd. Vs. Commissioner of Central Tax Bengaluru East - 2021 (3) TMI 414 CESTAT Bangalore  CCE vs. Convergys India Services Pvt Ltd - 2017 (48) STR 173 (Tri Chandigarh)  Overseas Infrastructure Albance (I) Pvt Ltd vs. Commr of CGST - 2021 (44) GSTL 379 (Tri Mumbai)  Warburg Pincus India Pvt Ltd vs. Commissioner of Service Tax, Mumbai - 2018 (364) ELT 159 (Tri Mumbai)  Olam Information Services Private Limited vs. Commissioner of Central GST & Excise, Chennai -

2022 (2) TMI 201 CESTAT Chennai 6 ST/51892/2015  HCL Technologies Ltd vs. CCE, Noida - 2015 (40) STR 369 (Tri. Del.) 4.6 As regards the denial of CENVAT credit of Rs.7,30,302/- on the ground that input service invoices are incomplete as the same are not bearing Service Tax Registration No., PAN based Service Tax Registration Number of the service provider, or not being issued on the address of registered premises of the Appellant etc, the learned Counsel submits that receipt and use of input services for export of output services is not disputed and it is only procedural lapse, on the basis of which the substantive benefit should not be denied. In this regard, he places reliance on the following decisions:

Adani Enterprises Ltd vs. CCE & ST, Ahmedabad - 2020 (40) GSTL 468 (Tri. Ahmd.) Diya Systems Pvt. Ltd. vs. Commissioner of Central Excise, Mangalore - 2027 (47) STR 58 (Tri. Bang.)  Kemwell Biopharma Pvt. Ltd. vs. Commr. of C.Ex., Bangalore - 2017 (47) STR 70 (Tri. Bang.) Commissioner of CE & ST, Noida vs. HCL Technologies Ltd - 2016 (46) STR 751 (Tri. Del.) Hindustan Unilever Ltd vs. CCE & ST, Kanpur - 2017 (3) GSTL 132 (Tri. All.) mPortal India Wireless Solutions Pvt Ltd vs. Commr.

of S.T., Bangalore - 2012 (27) STR 134 (Kar.)  Bechtel India Pvt Ltd vs. CST, Delhi - (2023) 11 Centax 321 (Tri. Chan.)

5. On the other hand, the learned Authorized Representative for the department reiterates the findings of the impugned order. 5.1 He submits that the Appellant have filed five different claims for the period January 2011 to March 2012 on account of accumulated CENVAT credit under Rule 5 of the CENVAT Credit Rules, 2004 read with Notification No. 05/2006-CE (NT) dated 14.03.2006 and Section 7 ST/51892/2015 11B of the Central Excise Act, 1944. He further submits that the Adjudicating Authority vide Order-in-Original dated 12.05.2014, sanctioned the refund of Rs.25,34,35,905/- and rejected the refund of Rs.1,12,17,594/- on account of inadmissible CENVAT credit. 5.2 He further submits that the Appellant itself have not contested the amount of credit of Rs.5,68,992/- which was denied on account of non-availability of input invoices with the Appellant and filed the present appeal in respect of remaining refund of Rs.1,06,48,601/- which was rejected by the Commissioner (Appeals). 5.3 He further submits that there are some disputed input services which fall under the exclusion clause of the definition of input service under CENVAT Credit Rules, 2004 w.e.f. 01.04.2011 for which the Appellant are not entitled to the refund.

6. We have considered the submissions made by both the parties and perused the material on records. We note that the main issue involved in the present appeals is whether the learned Commissioner (Appeals) is right in upholding rejection of refund of CENVAT credit due to absence of nexus and other grounds when the said CENVAT credit, when availed, was not objected.

7. As regards nexus, we find that each of the input service involved in the present case, was held to be 'input service' by various decisions of the Tribunal. In this regard, we may refer to the service- wise 'input services' and the decisions vide which it has been held to be 'input service', which are given herein below in tabular form:

8 ST/51892/2015 S. Description Amount Nexus with output Judicial No. of Services (in Rs.) service precedents/case-

laws

1. Credit Rating 4,36,475 Availed while Adani Port and Agency's recruiting employees Special Economic Services to do background Zone Ltd vs. CST -

                                  verification who are       2016 (42) STR 1010
                                  engaged in provision       (Tri. Ahmd.)
                                  of its output services

2.   Event            48,97,924   For organizing career      Warburg Pincus India
     Management                   fairs,          business   Pvt Ltd vs. CGST -
     Services                     promotion        events,   2022 (11) TMI 695
                                  internal team building     CESTAT Mumbai
                                  activities such events

3.   General           6,70,326   Insurance of assets        Utopia India Pvt Ltd
     Insurance                    including    laptops,      vs. CST, Bangalore -
     (Assets)                     servers and other IT       2011 (23) STR 25
                                  equipment                  (Tri. Bang.)

4.   General           3,10,015   Insurance            for   Tata    Teleservices
     Insurance                    employees and      their   (Maharashtra)    Ltd
     Services                     family members             vs. CST - 2024 (3)
                                                             TMI 1407 CESTAT
                                                             MUMBAI LB

5.   Tour               96,359    For          employees     Tata        Advanced
     Operators                    transportation to and      Materials Ltd vs. CCE
     Services                     fro   to   office  and     & ST - 2017 (7) TMI
                                  business travel            57            CESTAT
                                                             Bangalore

6.   Video             3,82,608   For recording official     24/7 Customer Pvt.
     Production                   events, seminars and       Ltd.             Vs.
     Services                     conferences held for       Commissioner      of
                                  employees and              Central         Tax
                                  training and marketing     Bengaluru  East    -
                                  activities                 2021 (3) TMI 414
                                                             CESTAT Bangalore

7.   Interior          2,14,016   For renovation and         Olam     Information
     Decorator's                  modernization of office    Services      Private
     Services                     building and premises      Limited           vs.
                                                             Commissioner       of
                                                             Central    GST      &
                                                             Excise, Chennai -
                                                             2022 (2) TMI 201
                                                             CESTAT Chennai

8.   Mandap              7,614    Availed for business       CCE vs. Convergys
     Keeper                       events      such   as      India Services Pvt
     Services                     conferences, seminars,     Ltd - 2017 (48) STR
                                  trainings    etc  and      173 (Tri Chandigarh)
                                  career/job fairs

9.   Club        or    3,58,456   Membership         of      Overseas
     Association                  business associations      Infrastructure
     Services                     engaged in evolving        Albance (I) Pvt Ltd
                                  innovative ideas and       vs. Commr of CGST
                                       9                                ST/51892/2015




                                  practices among      the    - 2021 (44) GSTL
                                  organizations/              379 (Tri Mumbai)
                                  employees
                                                              Warburg Pincus India
                                                              Pvt      Ltd     vs.
                                                              Commissioner      of
                                                              Service Tax, Mumbai
                                                              - 2018 (364) ELT
                                                              159 (Tri Mumbai)

10.   Photography       16,170    Issuing    photo      id,   Sarita Handa Exports
      Service                     clicking            and     P Ltd vs. CCE - 2016
                                  developing           the    (44) STR 654 (Tri.
                                  photographs of such         Chan.)
                                  employees for journals
                                  and internal reports        Fidelity     Business
                                                              services India Pvt Ltd
                                                              vs. CCT, Bengaluru
                                                              East - 2021 (50)
                                                              GSTL      315     (Tri.
                                                              Bang.)

11.   Sponsorship     20,33,318   Availed   for   brand       HCL Technologies Ltd
      Services                    promotion         and       vs. CCE - 2015 (40)
                                  enhancement          -      STR 369 (Tri. Del.)
                                  increases     domestic
                                  business    for   the
                                  appellant

12.   Insurance        1,23,056   For computation and         DBOI Global Services
      Auxiliary                   reporting of accrued        Pvt Ltd vs. Commr of
      Services                    gratuity on the             Service Tax, Mumbai
                                  compensated absence         - 2017 (48) STR 157
                                  liability of the            (Tri Mumbai)
                                  employees
                                                              Commissioner       of
                                                              Service          Tax,
                                                              Mumbai-II vs. WNS
                                                              Global   Services   -
                                                              2016 (44) STR 454
                                                              (Tri. Mumbai)

13.   Dry Cleaner's     63,427    For cleanliness of          CCE,   Chennai     vs.
      Services                    office furniture,           M/S    Fourrts     (I)
                                  carpets and curtains        Laboratories Pvt Ltd -
                                  sanitized and clean         2009-VIL-30-CESTAT
                                                              CHE-ST

14.   Outdoor          3,08,535   The appellant avails        Microsoft India (R&D)
      Caterer's                   the services of             Pvt Ltd vs. Commr of
      Services                    caterers to provide         CE & ST, Bengaluru -
                                  food to their               2022 (56) GSTL 29
                                  employees during the        (Tri - Bang)
                                  working hours
                                                              Commissioner       of
                                                              Central GST & C. Ex.,
                                                              Chennai           vs.
                                                              Flextronics
                                                              Technologies (I) Pvt
                                                              Ltd    - 2019 (366)
                                                              ELT    340   (Tri   -
                                     10                          ST/51892/2015




                                                        Chennai)

Grand Total       = 99,18,299




8. Since the identical input services as involved in the present case, were also involved in the Appellant's own case (supra) for the previous period, wherein this Tribunal has considered various case laws and has held that refund cannot be denied on the ground of nexus as well as minor procedural infirmities such as input service invoices are incomplete as the same are not bearing Service Tax Registration No., PAN based Service Tax Registration Number of the service provider, or not being issued on the address of registered premises of the Appellant etc. It may be relevant to reproduce the said findings of the Tribunal:

"8. Further, we find that the CBEC vide its Circular No. 120/01/2010-ST dated 19.01.2010 has clarified as under:
"3.1.2 Therefore, the phrase, "used in" mentioned in Notification No. 5/2006-C.E. (N.T.) to show the nexus also needs to be interpreted in a harmonious manner. The following test can be used to see whether sufficient nexus exists. In case the absence of such input/input service adversely impacts the quality and efficiency of the provision of service exported, it should be considered as eligible input or input service. In the case of BPOs/Call Centres, the services directly relatable to their export business are renting of premises; right to use software; maintenance and repair of equipment; telecommunication facilities; etc. Further, in the instant example, services like outdoor catering or rent-a-cab for pick-up and dropping of its employees to office would also be eligible for credit on account of the fact that these offices run on 24x7 basis and transportation and provision of food to the employees are necessary pre- requisites which the employer has to provide to its employees to ensure that output service is provided efficiently. Similarly, since BPOs/Call Centres require a large manpower, service tax paid on manpower recruitment agency would also be eligible both for taking the credit and the refund thereof. On the other 11 ST/51892/2015 hand, activities like event management, such as company-sponsored dinners/picnics/tours, flower arrangements, mandap keepers, hydrant sprinkler systems (that is, services which can be called as recreational or used for beautification of premises), rest houses etc. prima facie would not appear to impact the efficiency in providing the output services, unless adequate justification is shown regarding their need."

9. Further, we find that in the case of Qualcomm India Pvt Ltd vs. Commr (supra), it was held by the Tribunal that if the CENVAT credit has not been questioned at the time of availment, then the same cannot be questioned at the time of refund. The said decision of the Tribunal has been affirmed by the Hon'ble High Court of Telangana in the case of Commr. vs. Qualcomm India Pvt Ltd (supra), wherein the Hon'ble High Court has held as under:

"It is seen that the refund benefit was denied to the respondent/assessee on the sole ground that there was no nexus between the input services and the output services exported by the appellant/revenue - As the availment of CENVAT credit by the appellant under Rule 3 of the Rules is not called in question, the denial to grant refund under Rule 5 of the Rules without there being any proceedings initiated under Rule 14 of the Rules by seeking to deny the refund on the ground of the respondent/assessee availed CENVAT credit on input services, which according to the appellant/revenue have no nexus with the output service, in the considered view of the Bench, cannot be held to be justified -Reasons assigned by the Tribunal for holding that the respondent/assessee is entitled for grant of refund of unutilized CENVAT credit under Rule 5 of the Finance Act, does not call for any interference - Both the appeals of the revenue are dismissed.
[from para 14, 16, 21, 23 of the judgment]"

10. In view of our discussion above and by following the ratios of the above cited decisions, we are of the considered opinion that the impugned orders are not sustainable in law; consequently, we set aside the same and allow all four appeals with consequential relief, if any, as per law."

9. Since the issue involved in the present case is identical and has been decided by the Tribunal vide its Final Order dated 09.07.2025, hence, by following the ratio of said decision, we are of 12 ST/51892/2015 the considered opinion that the impugned order is not sustainable in law; consequently, we set aside the same and allow the appeal of the Appellant with consequential relief, if any, as per law.

(Order pronounced in the open court on 13.02.2026) (S. S. GARG) MEMBER (JUDICIAL) (P. ANJANI KUMAR) MEMBER (TECHNICAL) RA_Saifi