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Corporate News *  Missing seized records must be considered while testing ITC claim; duplicate GST demands ordered corrected: Delhi High Court. *  GST appeal can’t be rejected without addressing taxpayer’s grounds: Allahabad High Court. *  Surplus IGST credit can offset CGST, SGST shortfall: GSTAT. *  GST refund can’t be denied when cancelled airfares are returned with tax: GSTAT. *  3 Hearing notices issued within 2 minutes: Gujarat High Court flags portal flaw, seeks report. *  GSTR-9, GSTR-9C filing for FY 2025-26 enabled; pending GSTR-1 and GSTR-3B must be filed first. *  Dupattas are exempt fabrics, can’t be taxed as fibres at 4%: Madras High Court. *  Full transitional credit allowed on capital goods received after GST rollout: GSTAT denies Rs. 6.99 lakh export duty credit. *  GST return mismatch alone can’t justify fraud proceedings: GSTAT orders fresh adjudication under section 73. *  Supplier found non-existent later can’t alone justify input tax credit denial: GSTAT. *  GST interest stops once tax reaches government account, can’t run until return filing: GSTAT. *  Cancelled flat booking- GST refund can’t be denied without excluding COVID period from limitation: GSTAT. *  India notifies rules of origin for India–New Zealand FTA. *  Incomplete E-bike kits classifiable as complete vehicles, but not eligible for CKD duty concession: CESTAT. *  Same GST rate on main input and output can’t by itself bar inverted duty refund: GSTAT. *  Unjust enrichment doesn’t apply to customs refunds from assessments finalised before July 13, 2006: Gujarat High Court. *  CENVAT credit can’t be denied solely because plant And machinery are embedded in earth: Karnataka High Court. *  DFIA exports ineligible for RoDTEP benefits; customs directs repayment with applicable interest. *  Second E-Way bill alone doesn’t prove another supply: GSTAT. *  Bail denied in Rs. 1.19 crore fake GST refund case over risk of accused absconding again: Punjab and Haryana High Court. *  GST registration can be restored after revocation deadline if outstanding dues are paid: Gauhati High Court. *  Multiple GST proceedings over same suppliers: Calcutta High Court directs dept. to share findings for adjudication. *  E-Governance portal services not OIDAR, fixed deposit interest not taxable: CESTAT. *  Rs. 500 Stamp duty required on authority letters for CAs, CMA and GST practitioners in Pune GST division.  *  Rs. 1.10 crore GST refund must be paid in cash after business closure: Allahabad High Court. *  Godown rent attracts 18% GST even when used exclusively for exempt agricultural warehousing: AAR. *  GST portal launches "Multi-State Registration" facility: one master TRN for registration applications across multiple States/UTs. *  RoDTEP scheme extended till 31st December, 2026.  *  Mere disagreement with order can’t override Rs. 20 lakh appeal limit: GSTAT. *  Customs interest can’t be backdated before confiscation liability is determined; nearly 8 year period excluded: Delhi High Court.
Subject News *  GST summons: anticipatory bail maintainable without arrest order, but relief denied in evasion case: Allahabad High Court. *  GST Appeal can’t be decided without hearing taxpayer’s objections to fresh evidence: Allahabad High Court. *  GST ITC can’t be reversed merely because supplier grants discount without reducing tax liability: GSTAT. *  Mere quoting of GST provision is not a valid charge: GSTAT quashes ITC denial. *  Personal hearing mandatory before adverse GST order, even without taxpayer’s request: Rajasthan High Court. *  Parallel bail pleas without full disclosure amount to abuse of process Rs. 43.08 crore GST case sent for fresh hearing: Supreme Court. *  GST refund based on unchallenged advance ruling can’t be recovered using later circular: GSTAT. *  Payment of GST alone doesn’t end interest and penalty liability when tax and interest remain unpaid beyond 30 days of notice: GSTAT. *  GST demand over builders’ 80% procurement rule requires reasoned adjudication: GSTAT. *  Eligible ITC doesn’t automatically entitle taxpayers to compensation cess refund on domestic sales: GSTAT. *  GST confiscation order passed before reply deadline invalid: GSTAT. *  GST interest can’t be retained after tax refund on delayed export receipts: Punjab & Haryana High Court. *  GST appeal can’t be dismissed over pre-deposit shortfall without opportunity To respond: Bombay High Court. *  DGGI SCN can’t be challenged before reply and adjudication:Chhattisgarh High Court. *  GST input tax credit can’t be denied solely due to supplier’s retrospective registration cancellation: GSTAT. *  GST notice must explain fraud allegations; merely repeating section 74 Is not enough:  Himachal Pradesh High Court. *  Audit detection alone can’t justify GST fraud penalty; specific suppression must be proved: GSTAT. *  GST order uploaded only under ‘Additional Notices’ tab without separate intimation set aside: Calcutta High Court. *  Service Tax appeal can’t be rejected for missing pre-deposit proof when payment is already recorded: CESTAT. *  SGST dept. can’t hear appeal against CGST order: Calcutta High Court. *  Mere dispatch of tax order can’t prove service or make appeal time-barred: CESTAT. *  Dealer incentives can’t be taxed merely on ledger entries: CESTAT. *  DGFT orders quashed for failure to supply DRI letter relied upon in SCN: Bombay High Court. *  GST penalty u/s 122(1A) can’t apply to Pre-2021 transactions; unregistered beneficiaries also covered: Delhi High Court. *  Expired E-way bill caused by wrong PIN code can’t justify GST penalty without intent to evade tax: GSTAT. *  Used railway rails can’t be taxed as track material without proof they are fit for reuse: CESTAT. *  Earlier DGGI notice doesn’t bar separate GST demand on different issue: Delhi High Court. *  ITC dispute involves no question of law: GSTAT directs appeal to Vice-President. *  Earlier DGGI notice doesn’t bar separate GST demand On different issue: Delhi High Court. *  No E-way bill required for interstate goods movement in november 2017: GSTAT quashes detention and penalty.  

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PJ/Case law/2013-14/1867

Refund of accumulated credit on Advertisement, Housekeeping service, AMC, C & F services, CA, Manpower Recruitment and Security Agency services.

Case:-C. CUBED SOLUTIONS PVT. LTD. VERSUS COMMISSIONER OF C. EX., BANGALORE
 
Citation:-2013(293) E.L.T. 398 (Tri.-Bang.)

Brief Facts:-Appeal No. 361/2009 is filed by M/s. C. Cubed Solutions Pvt. Ltd. against the order of the Commissioner (Appeals) No. 322/2008 dated 28-11-2008. Appeal No. 308/2009 is by the department against the same order of the Commissioner (Appeals). Since both appeals are arising out of a common order and involve common issues, they are being disposed of by this common order.
 
The relevant facts are that the appellant-assessee is a 100% EOU under STPI Scheme and is engaged in providing IT enabled services. They preferred refund claim of unutilized accumulated credit on input services used in the export of taxable services under Notifications Nos. 12/2005 and 5/2006-C.E. (N.T.), dated 14-3-2006 issued under Rule 5 of the Cenvat Credit Rules, 2004. The original authority sanctioned refund of Rs. 1,96,349/- out of a claim of Rs. 2,30,125/- and rejected the balance claim for Rs. 33,776/-.
The appellant-assessee filed appeal to the Commissioner (Appeals) against the rejection of Rs. 33,776/- under the category of Advertisement, Housekeeping service, Annual Maintenance Contract service, Clearing & Forwarding service, Chartered Accountant services, Manpower Recruitment or Supply service and Security Agency service. The Commissioner (Appeals) by the impugned order allowed credit in respect of chartered accountancy, manpower recruitment and supply service and security agency service. Against this portion of the order, the department is in appeal.
The Commissioner (Appeals), however, upheld the order of the original authority in so far as the same related to rejection of refund of credit on advertisement, housekeeping service, hiring of furniture and clearing and forwarding service. Against this portion of the order, the appellant-assessee is in appeal.
 
Appellant Contentions:-The learned consultant appearing for the assessee submits that the assessee is involved in export of services. The entire input services utilized by them relate to manpower employed by them and computer related facilities. To recruit manpower, they have given advertisement and the same should be considered as input services. They have also hired some furniture for use in their office and the same should be treated as input service. Similarly, the housekeeping service is part and parcel of the business activity and the same should be treated as input service in relation to the service exported by them. An amount of Rs. 153/- relates to clearing and forwarding service which was used in relation to import of computer and computer related equipments. The learned consultant relied on the judgment of Karnataka High Court in the case of Commissioner of Central Excise, Bangalore-III v. Stanzen Toyotetsu India Pvt. Ltd., reported in 2011 (23) S.T.R. 444 (Kar.).
 
Respondent Contentions:-The learned Superintendent (AR) referring to the grounds of appeal submits that in respect of manpower recruitment or supply service and security agency service, the assessee “has not even attempted to explain how exactly the said services are used in providing output taxable service which has been exported, except in the way of resorting to generalities and vague expressions of justification”. In respect of other services, she reiterates the findings and reasoning given by the Commissioner (Appeals).
 
Reasoning of Judgment:-We have carefully considered the submissions made by both sides and perused the records. As regards the department’s appeal allowing refund of credit on ‘manpower recruitment service’ and ‘security agency service’, it is found that the ground raised by them is not valid. The appellant being an IT related service provider, undisputedly, the recruitment of manpower was, obviously for rendering those services and what further details were required by the department are not forthcoming. Similarly, the ‘security agency services’ are used for securing their office premises. Therefore, there is no justification for interfering with the order of the Commissioner (Appeals) allowing refund of credit in respect of these services.
As regards, the upholding the denial of credit by the Commissioner (Appeals), in respect of advertisement, it is found that the same had been used for the purpose of advertisement for recruiting manpower. There is no justification for disallowing this credit. Similarly, ‘hiring of furniture’ has been for use in their office and ‘housekeeping services’ related to the running of the office. Therefore, the credit should have been allowed for these services. Inasmuch as the ‘clearing and forwarding services’ were used in relation to import of equipments by the assessee, the same also should be treated as input service. In view of the above, the order of the Commissioner (Appeals) in disallowing the refund of the credit in respect of these services cannot be upheld.
In view of theabove, the appeal by the department is rejected and the appeal of the assessee is allowed with consequential relief as per law.
 
Decision:-Appeal allowed.
 
Comment:- The gist of this case is that appellant can take refund of un-utilized credit on various input services which is used for providing output service. Definition of Input service is not exhaustive but inclusive. Hence, credit could not be denied on such input services that are used in providing output services. 

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