Custom, Excise & Service Tax Tribunal
Shell India Markets Pvt Ltd vs Commissioner Of Service Tax ... on 20 May, 2014
CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL SOUTH ZONAL BENCH BANGALORE Final Order . 20850 / 2014 Application(s) Involved: ST/MISC/501/2011 in ST/2405/2010-DB Appeal(s) Involved: ST/2405/2010-DB [Arising out of order-in-appeal No. 277-2010-ST dated 09/08/2010 passed by the Commissioner of Central Excise (Appeals) Bangalore] SHELL INDIA MARKETS PVT LTD RMZ CENTENNIAL CAMPUS B #8B, KUNDANDAHALLI MAIN ROAD, BANGALORE.560048 Appellant(s) Versus Commissioner of Service Tax BANGALORE-SERVICE TAX NULL 1ST TO 5TH FLOOR, TTMC BUILDING,above BMTC BUS STAND,DOMLUR BANGALORE, - 560071 KARNATAKA Respondent(s)
Appearance:
Mr. Prasad Paranjape, Adv For the appellants Mr.A.K. Nigam, A.R. For the Respondent CORAM:
HON'BLE SHRI B.S.V.MURTHY, TECHNICAL MEMBER HON'BLE SHRI S.K. MOHANTY, JUDICIAL MEMBER Date of Hearing: 20/05/2014 Date of Decision: 20/05/2014 Order Per : B.S.V.MURTHY Appellants are in appeal against denial of refund of CENVAT credit availed on input services namely event management servicesm, real estate agent service, consultant service, tour operator service and travel agent service. Refund has been claimed on the ground that the credit could not be utilized because the output service is exported and accumulated CENVAT credit is to be refunded under Rule 5 of CENVAT Credit Rules 2004 under Notification No. 5/06 NT dated 14.03.2006.
2. Heard both sides.
3. The learned counsel submits that event management service has been used for interaction of employees with senior leadership of the company and service is received in relation to business promotion and team building activities. As regards real estate agent service, he submits that services were utilized for identification of property for lease for use for their business and providing temporary accommodation for employees and tour operators services and travel agents services are used for the purpose of business travels of the officials of the company. He relies on the decision in the case of Dell International Services India Pvt. Ltd. Vs CCE Bangalore [2010(17)S.T.R. 540 (Tri-Bang)] to submit that event management service (input service) is covered by the definition of input service. As regards tour operators service and travel agents service, he relies upon the decision in the case of Cadmach Machinery Co. Pvt Ltd Vs CCE Ahmadabad [2009-TIOL-1503-CESTAT Ahm]. We find that as submitted by the learned counsel, in all these cases, the decisions are in favour of the appellants. Learned A.R. would rely upon the decision in the case of Satyam Computer Services Ltd. Vs CST, Hyderabad [2011(22)S.T.R.73(Tri-Bang)]. On going through this decision, we find that para 5.1 of this order would be relevant and is reproduced below:
5.1?As regards Event Management and Health and Fitness, their nexus with the provision of output service is not clear. In the instant case, the assessee has not established that expenditure incurred on Health and Fitness service and Event Management service qualify for taking credit for the same reason as was found in the case of outdoor catering service in GTC Industries Ltd. case, or otherwise. However, we find that the Tribunal had relied upon the decision in the case of GTC Industries to come to the conclusion. But subsequently there are several decisions taking a contrary view to the one taken in the case of GTC Industries. Therefore, this decision would not be applicable to the present case. Moreover the decision is only with regard to a stay application and not a final order. Therefore, it cannot be considered as a precedent decision.
4. In view of the above, appellant has made out a complete case for eligibility for refund in respect of service tax paid on all the above input services. However, the matter has to be remanded for the purpose of verification of documents and records and sanction of refund and payment of the amount to the appellant. Accordingly, the appeal is allowed by way of remand for sanction and payment of refund in accordance with law subject to the observations made hereinabove.
(Operative portion of the order has been pronounced in open court) S.K. MOHANTY JUDICIAL MEMBER B.S.V.MURTHY TECHNICAL MEMBER Pnr...
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