Custom, Excise & Service Tax Tribunal
Maersk Global Service Centres I P Ltd vs Commissioner Of Gst&Amp;Cce(Chennai ... on 13 July, 2018
1
IN THE CUSTOMS, EXCISE AND SERVICE TAX
APPELLATE TRIBUNAL
SOUTH ZONAL BENCH AT CHENNAI
Appeal Nos. ST/42454 - 42457/2017
(Arising out of Orders-in-Appeal No. 77,78,79 & 80/2017 (CTA-II) dt.
30.07.2017 passed by the Commissioner of Central Tax (Appeals-II),
C.G.S.T & Central Excise.)
M/s. Maersk Global Service Centres (India) Pvt. Ltd. : Appellant
Vs.
Commissioner of G.S.T & C.C.E , (Chennai Outer) : Respondent
Appearance:-
Shri. Karthik Sundaram, Advocate for the Appellant Shri S. Govindarajan, AC (AR) for the Respondent CORAM:
Hon'ble Shri P. Dinesha, Member (Judicial) Date of Hearing/Decision:23.05.2018 Date of Pronouncement:13.07.2018 Final Order No. 42066-42069 / 2018 The appellant is registered under the taxable category of Business Support Service (BSS) and under other categories as well as a service recipient. The appellant filed an application for refund of Rs. 32,44,738/- under Rule 5 of the Cenvat Credit Rules (CCR), 2004, 2 mainly on the ground that the output services provided during the impugned period had been exported and that therefore, they were unable to utilize the Cenvat Credit of service tax taken on the input services used for providing such export service. Vide Order in Original No. 281/2016 dt. 30.04.2016, the adjudicating authority allowed the refund claim except to an extent of Rs. 89,344/- on the ground that this amount pertained to Air Travel Services which, according to the AA, was an ineligible input service under the amended Rule 2(l) of CCR, 2004. Aggrieved by the disallowance, the appellant preferred an appeal before the Commissioner (Appeals) who vide order dt. 30.7.2017 in O-I-A No. 77/2017 confirmed the disallowance, after relying on the following orders:
(i). ADC INDIA COMMUNICATIONS LTD. Vs. C.C.E., BANGALORE [2012 (283) E.L.T. 415 (Tri. - Bang.)]
(ii). PARASON MACHINERY (I) PVT. LTD. Vs. C.C.E., AURANGABAD [2012 (277) E.L.T. 215 (Tri. - Mumbai)] Against this order, the appellant is before this forum.
2. Shri. Karthik Sundaram, Advocate, appeared on behalf of the appellant and Shri S. Govindarajan, DR, appeared for the Department. I have considered their arguments and I have gone 3 through the documentary evidence referred to by them during hearing, along with various case laws referred to by them. The Ld. Advocate Shri. Karthik Sundaram submitted that the findings of the Ld. Commissioner (Appeals) was clearly wrong as he has not appreciated the pleadings vis-à-vis the documentary evidences submitted by the appellant substantiating its claim. This fact, according to the Ld. Counsel, was very much crucial, which was not available in the case laws relied upon by the Ld. Commissioner (Appeals).
3. Per contra, Ld. Department Representative (DR) Shri S. Govindarajan supported the findings of the lower authorities.
4. I find that the issue involved in these appeals is no more res integra as the same is settled by the decisions of various courts. The undisputed fact is that the Air Travel Agents Service was used mainly for the employees of the appellant to travel for the appellant's business purposes, which has a direct nexus between the input services and the services exported by the appellant since such travels were made by the employees on projects, assignments, etc., undertaken by the appellant for its business purposes. My view is supported by the following orders/decisions : 4
Heartland Bangalore Transcription Ser. (P) Ltd. Vs. C.S.T., Bangalore - 2011 (21) S.T.R. 430 (Tri. - Bang.), EMCON Technologies India Pvt. Ltd.Vs. Commissioner of C. Ex., Bangalore -
2013 (31) S.T.R. 441 (Tri. - Bang.) Goodluck Steel Tubes Ltd. Vs. Commissioner of C. Ex. Noida - 2013 (32) S.T.R. 123 (Tri. - Del.) and Robert Bosch Engg. & Business Solutions Ltd. Vs. C.C.E. & S.T., Bangalore-
LTU - 2017 (51) S.T.R. 329 (Tri. - Bang.).
5. Accordingly, I set aside the impugned order and allow the appeal with consequential reliefs, if any, to the appellant.
(Pronounced in open court on 13.07.2018) (P Dinesha) Member (Judicial) Sdd