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Global e-Business Operations Pvt. Ltd V/S Commissioner of Central Excise, Customs and Service Tax (Appeals), Bangalore-I Commissionerate


Company & Directors' Information:- B N GLOBAL PRIVATE LIMITED [Active] CIN = U15400PB2014PTC038543

Company & Directors' Information:- K V GLOBAL PRIVATE LIMITED [Active] CIN = U24100DL2014PTC263567

Company & Directors' Information:- GLOBAL CORPORATION LIMITED [Active] CIN = L74999DL1992PLC048880

Company & Directors' Information:- T & I GLOBAL LTD. [Active] CIN = L29130WB1991PLC050797

Company & Directors' Information:- J. H. BUSINESS (INDIA) LIMITED [Amalgamated] CIN = U24293DL1999PLC099782

Company & Directors' Information:- K G GLOBAL PRIVATE LIMITED [Active] CIN = U74999DL2000PTC104788

Company & Directors' Information:- A. V. GLOBAL CORPORATION PRIVATE LIMITED [Active] CIN = U63090DL2007PTC159315

Company & Directors' Information:- GLOBAL BUSINESS INDIA PRIVATE LIMITED [Amalgamated] CIN = U16008DL1999PTC100758

Company & Directors' Information:- A N GLOBAL LIMITED [Active] CIN = U92110MH1985PLC035269

Company & Directors' Information:- D S GLOBAL PRIVATE LIMITED [Active] CIN = U74899DL1995PTC071516

Company & Directors' Information:- G B BUSINESS LIMITED [Active] CIN = U51109WB1983PLC036744

Company & Directors' Information:- A B C GLOBAL PRIVATE LIMITED [Active] CIN = U51909PB2011PTC035103

Company & Directors' Information:- GLOBAL E-BUSINESS OPERATIONS PRIVATE LIMITED [Active] CIN = U72300KA2000PTC027867

Company & Directors' Information:- R P BUSINESS PRIVATE LIMITED [Active] CIN = U74210AS2000PTC006302

Company & Directors' Information:- S N M BUSINESS PRIVATE LIMITED [Active] CIN = U51109WB1997PTC085308

Company & Directors' Information:- P R S BUSINESS PVT LTD [Active] CIN = U63090WB1992PTC056995

Company & Directors' Information:- I A T GLOBAL COMPANY PRIVATE LIMITED [Active] CIN = U24116DL1997PTC084916

Company & Directors' Information:- J D GLOBAL PRIVATE LIMITED [Active] CIN = U51909DL1997PTC091270

Company & Directors' Information:- M L B BUSINESS PRIVATE LIMITED [Active] CIN = U51109WB2000PTC091878

Company & Directors' Information:- J F C BUSINESS LTD [Active] CIN = U17125WB1990PLC048495

Company & Directors' Information:- B N G GLOBAL INDIA LIMITED [Active] CIN = U52590DL2011PLC225377

Company & Directors' Information:- A TO Z BUSINESS (INDIA) PRIVATE LIMITED [Under Process of Striking Off] CIN = U51909TZ2008PTC014261

Company & Directors' Information:- N K COMPANY (GLOBAL) PRIVATE LIMITED [Active] CIN = U52390WB2010PTC153624

Company & Directors' Information:- K B K GLOBAL PRIVATE LIMITED [Active] CIN = U24296DL2016PTC290487

Company & Directors' Information:- S V BUSINESS PVT LTD [Active] CIN = U27310WB1984PTC038146

Company & Directors' Information:- R R BUSINESS PRIVATE LIMITED [Active] CIN = U74999WB2007PTC176588

Company & Directors' Information:- M R BUSINESS PRIVATE LIMITED [Active] CIN = U51109WB1994PTC064165

Company & Directors' Information:- M & D GLOBAL PRIVATE LIMITED [Active] CIN = U31101UP1974PTC003937

Company & Directors' Information:- J C BUSINESS PRIVATE LIMITED [Active] CIN = U55101AS2009PTC008974

Company & Directors' Information:- V R GLOBAL PRIVATE LIMITED [Active] CIN = U45200WB2007PTC120797

Company & Directors' Information:- D & B BUSINESS PRIVATE LIMITED [Active] CIN = U51909PB2010PTC033901

Company & Directors' Information:- M M GLOBAL PRIVATE LIMITED [Strike Off] CIN = U29120WB1986PTC041280

Company & Directors' Information:- R V GLOBAL PRIVATE LIMITED [Active] CIN = U74990MH2009PTC195301

Company & Directors' Information:- M M C GLOBAL INDIA PRIVATE LIMITED [Strike Off] CIN = U11200MH2010PTC206910

Company & Directors' Information:- S R GLOBAL PRIVATE LIMITED [Strike Off] CIN = U51109WB1997PTC084553

Company & Directors' Information:- H V GLOBAL PRIVATE LIMITED [Active] CIN = U18101DL2000PTC103960

Company & Directors' Information:- R P GLOBAL PRIVATE LIMITED [Strike Off] CIN = U74990MH2009PTC193409

Company & Directors' Information:- M S GLOBAL PRIVATE LIMITED [Active] CIN = U70100MH2008PTC213273

Company & Directors' Information:- R S V GLOBAL LIMITED [Strike Off] CIN = U51909DL1994PLC059032

Company & Directors' Information:- P N S BUSINESS PRIVATE LIMITED [Active] CIN = U74140WB2005PTC101643

Company & Directors' Information:- M S BUSINESS PRIVATE LIMITED [Active] CIN = U51909MH1997PTC111137

Company & Directors' Information:- J S B BUSINESS PVT LTD [Active] CIN = U27109WB1996PTC078319

Company & Directors' Information:- N B GLOBAL (INDIA) PRIVATE LIMITED [Active] CIN = U15122UP2012PTC051614

Company & Directors' Information:- A V S BUSINESS PRIVATE LIMITED [Strike Off] CIN = U31908UP2010PTC040437

Company & Directors' Information:- A C BUSINESS PRIVATE LIMITED [Strike Off] CIN = U45208MH2009PTC197088

Company & Directors' Information:- J A J GLOBAL BUSINESS PRIVATE LIMITED [Strike Off] CIN = U24232KA2012PTC065587

Company & Directors' Information:- V K BUSINESS PVT LTD [Active] CIN = U21012WB1996PTC079121

Company & Directors' Information:- OPERATIONS O A (INDIA) PRIVATE LIMITED [Active] CIN = U74899DL1995PTC071631

Company & Directors' Information:- S P A BUSINESS PVT LTD [Strike Off] CIN = U29296WB1990PTC050043

Company & Directors' Information:- A D BUSINESS PRIVATE LIMITED [Active] CIN = U74900MH2008PTC178245

Company & Directors' Information:- A V R BUSINESS PRIVATE LIMITED [Active] CIN = U74992UP2008PTC034629

Company & Directors' Information:- C K BUSINESS PRIVATE LIMITED [Under Process of Striking Off] CIN = U51399DL2003PTC118289

Company & Directors' Information:- C AND D BUSINESS INDIA PRIVATE LIMITED [Strike Off] CIN = U52300KA2010PTC053211

Company & Directors' Information:- BUSINESS CORPN PRIVATE LIMITED [Strike Off] CIN = U15429UP1945PTC001335

Company & Directors' Information:- M M BUSINESS PVT LTD [Strike Off] CIN = U51909WB2005PTC106884

Company & Directors' Information:- L K BUSINESS PVT LTD [Active] CIN = U45202WB1985PTC038604

Company & Directors' Information:- T. S. GLOBAL (INDIA) BUSINESS PRIVATE LIMITED [Active] CIN = U74999DL2016PTC303396

Company & Directors' Information:- C L BUSINESS PRIVATE LIMITED [Active] CIN = U93000WB2014PTC202032

Company & Directors' Information:- A. P. V. BUSINESS PRIVATE LIMITED [Strike Off] CIN = U14299RJ2017PTC058759

Company & Directors' Information:- A M GLOBAL PRIVATE LIMITED [Active] CIN = U74999MH2015PTC261061

Company & Directors' Information:- J V B BUSINESS PRIVATE LIMITED [Active] CIN = U74999MH2016PTC282145

Company & Directors' Information:- U & C BUSINESS CORPORATION PRIVATE LIMITED [Strike Off] CIN = U51909TG2014PTC095129

Company & Directors' Information:- A R M G BUSINESS PRIVATE LIMITED [Strike Off] CIN = U51909UP2013PTC055405

Company & Directors' Information:- L S A GLOBAL INDIA PRIVATE LIMITED [Under Process of Striking Off] CIN = U74900TG2015PTC098308

Company & Directors' Information:- U K BUSINESS PRIVATE LIMITED [Active] CIN = U74999UP2016PTC086597

Company & Directors' Information:- R L GLOBAL INDIA PRIVATE LIMITED [Strike Off] CIN = U52300HP2014PTC000764

Company & Directors' Information:- G R GLOBAL PRIVATE LIMITED [Active] CIN = U70102KA2013PTC069586

Company & Directors' Information:- H. E. GLOBAL PRIVATE LIMITED [Active] CIN = U72901GJ2016PTC092866

Company & Directors' Information:- CENTRAL BUSINESS CORPORATION LIMITED [Dissolved] CIN = U99999MH1933PTC001945

Company & Directors' Information:- CENTRAL BUSINESS CORPORATION LIMITED [Dissolved] CIN = U99999MH1945PTC004566

    ST/21112/2017-SM, ST/21113/2017-SM (Arising out of Order-in-Appeal Nos. 232-233/2017 dated 19/04/2017 passed by Commissioner of Central Excise, BANGALORE-II (Appeal)) and Final Order Nos. 22680-22681/2017

    Decided On, 27 October 2017

    At, Customs Excise Service Tax Appellate Tribunal South Zonal Bench At Bangalore

    By, THE HONORABLE JUSTICE: S.S. GARG
    By, MEMBER

    For Petitioner: Nitesh Kancharia, Sr. Manager for B.M.R. & Associates And For Respondents: Naveen Kushalappa, AR



Judgment Text


1. Appellants have filed these two appeals against common impugned order dated 19.4.2017 passed by the Commissioner (A), whereby the Commissioner (A) has allowed the departmental appeal and modified the Order-in-Original.

2. Briefly the facts of the case are that the appellant is a wholly owned subsidiary of Hewlett-Packard Global Investment B.V., a company belonging to the Hewlett Packard (HP) Group. The appellant is registered with Service Tax Department for payment of Service Tax under the categories of Business Auxiliary Services and Renting of Immovable Property services. They provide data processing and other IT enabled services for Hewlett-Packard companies worldwide which are exported. The appellant is registered with the Software Technology Park of India (STPI). The appellant have filed two refund claims of unutilized CENVAT credit on various input services under Rule 5 of CENVAT Credit Rules, 2004 for the periods October 2011 to December 2011 and January 2012 to March 2012. After due process, the original adjudicating authority vide Order-in-Original No. 431 & 432/2014 sanctioned the substantial amounts of refunds. Being partly aggrieved by the orders, the Department has filed appeals for rejection and recovery of refund on maintenance of building services for which the original adjudicating authority has sanctioned the refunds under the category of maintenance and repair services. The learned Commissioner (A) allowed the appeal filed by the department vide the impugned order. Aggrieved by the said order, the appellant is before me.

3. Heard both the parties and perused the records.

4. Learned counsel for the appellant submitted that the impugned order allowing the appeal of the Department is wrong and illegal and not sustainable in law as the same has been passed contrary to the provisions of the Central Excise Rules and also by ignoring the binding judicial precedent on the identical issue. He further submitted that the learned Commissioner (A) has not considered the written submissions filed before him. He further submitted that the expenses incurred towards maintenance of building come within the inclusive part of input service as per Rule 2(1) of CENVAT Credit Rules, and duly qualify as eligible input service. In support of this submission, he relied upon the following decisions:

* Xilinx India Technology Services Pvt. Ltd : 2016 (44) STR 635 (Tri.-Hyd.)

* GE India Exports (P) Ltd : 2016 (44) STR 693 (Tri.-Hyd.)

* Marathon Electric India Pvt. Ltd : 2016 (45) STR 253 (Tri.-Hyd.)

* Alliance Global Services IT India (P) Ltd : 2016 (44) STR 113 (Tri.-Hyd.)

* Exide Industries Ltd : 2016 (43) STR 463 (Tri.-Del.)

He further submitted that the expenses towards maintenance of building forms part of rent agreement and there is a nexus between the input service and the service exported. He further submitted that no specific correlation is required between the input and output services which has been accepted by the department also vide Circular No. 120/01/2010 dated 19.1.2010. He further submitted that segregation of refund amounts pertaining to maintenance of building and equipment was already furnished with the refund adjudicating authority.

5. On the other hand, the learned AR reiterated the findings of the impugned order and he further submitted that the appellant has not submitted any proof to substantiate that the service tax paid on maintenance of building has been directly used for the service exported and therefore, the appellant is not eligible for the refund of service tax paid on the maintenance of building.

6. After considering the submissions of both the parties and perusal of the material on record as well as various decisions relied upon by the appellant, I find that the learned Commissioner (A) has rejected refund of the appellant on the ground that the definition of input service as per Rule 2(1) of CENVAT Credit Rules, 2004 has been amended to exclude the words activities relating to business from 1.4.2011 and therefore, the CENVAT Credit pertaining to maintenance of building has been rejected. Further, he has observed that the appellant has not provided any documentary evidence to justify the nexus between the input service of building maintenance and output service. Further, I also find that even after the amendment in the definition of input service, there is no requirement of correlation between the input and output services. Further, in all the decisions relied upon by the appellant cited supra, expenses incurred towards maintenance of building has been considered to be an input ser

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vice as per Rule 2(1) of CENVAT Credit Rules because it is directly connected with the output service. Further, I also find that the expenses towards maintenance of building forms part of the rent agreement and therefore, there is a nexus between the input service and the services exported. In view of my discussions above and by following the ratio of the above decisions, I am of the considered view that the impugned order is not sustainable in law and the same is set aside by allowing both the appeals of the appellant.
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