Subscribe to the Bombay Chartered Accountant Journal Subscribe Now!

July 2015

[2015-TIOL-1085-CESTAT-MUM] Commissioner of Service Tax, Mumbai-ii vs. Syntel Sterling Bestshores Solutions Pvt. Ltd

By Puloma Dalal
Jayesh Gogri
Mandar Telang Chartered Accountants
Reading Time 1 mins
fiogf49gjkf0d

Input services without which the quality and efficiency of output services exported cannot be achieved are eligible for refund.

Facts:
The
Respondent is a BPO rendering services to the clients based abroad. A
refund claim was filed in respect of service tax paid on rent-a-cab
service, telephone service and rent. Adjudicating authority denied the
claim. On appeal, the first appellate authority allowed the refund
claim, aggrieved by which revenue is in appeal.

Held:
The
Tribunal relied upon the CBEC’s Circular No. 120/01/2010-ST dated
19/01/2010 which specifically provides that essential services used by
Call Centres for provision of their output service would qualify as
input services eligible for taking CENVAT credit as well as refund. It
further held that the expression ‘used in’ in the CENVAT Credit Rules
should be interpreted in a harmonious manner and accordingly as the
input services disallowed were essential to provide quality output
services, the refund should be granted.

Download PDF

You May Also Like

Refund – Self-assessment tax – Interest – Sections 140A, 244A(1)(a),(b) and 264 – A. Y. 1994-95 – Excess amount paid as tax on self-assessment – Interest payable from date of payment to date of refund of the amount

Capital gain: Long-term or short-term – Sections 2(42A) and 45 – Written lease for three years – Assessee continuing to pay rent and occupying premises for 10 more years – Amount received on surrender of tenancy is long-term capital gain