Custom, Excise & Service Tax TribunalApplied Materials India Pvt Ltd vs Commissioner Of Service Tax ... on 15 October, 2014CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL
SOUTH ZONAL BENCH
BANGALORE

Final Order No.    21889 / 2014    


Appeal(s) Involved:

ST/661/2012-DB 



[Arising out of OIA No.516-2011 dated 05/01/2012 passed by CCE(Appeals-II), Bangalore ]

APPLIED MATERIALS INDIA PVT LTD 
UNIT5, 3RD FLOOR, EXPLORER BUILDING, INTERNATIONAL TECHNOLOGY PARK LTD WHITEFIELD ROAD, BANGALORE 560 027 
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:Shri Siddeshwara Yelamali, Advocate
For the appellant
Shri Mohd. Yusuf, Addl. Commissioner(AR)
For the respondent


CORAM:HON'BLE SHRI B.S.V.MURTHY, TECHNICAL MEMBER
HON'BLE SHRI S.K. MOHANTY, JUDICIAL MEMBER


Date of Hearing: 15/10/2014
Date of Decision: 15/10/2014

Order Per : B.S.V.MURTHY 


 		The appellant is engaged in the business of design and development of computer software and providing engineering support services to its customer situated outside India viz. Applied Materials, Inc., USA.  The appellants availed service tax paid on input services as CENVAT credit and since they cannot utilize the same for payment of tax on output service which are exported, they have claimed refund of tax paid on input services and as per provisions of Notification No.5/2006 NT dt. 14.3.2006 issued under Rules 5 of CENVAT Credit Rules, 2004(CCR).  Refund claim amounting to more than Rs.36.81 lakhs has been rejected on the ground that there is no nexus between intput and output services.  The learned counsel gave details of the services in respect of which it has been held that nexus is non-existent and gave details.2.		In respect of clearing & forwarding service, commercial training service, cleaning service, consulting engineering service, management consultancy service, rent-a-cab service, security agency service,  business auxiliary service, online information & database access or retrieval service, infrastructure management service and renting of immovable property service, this Tribunal according to the counsel has already taken a view in favour of the appellant.  In the case of last item, for a subsequent period, the original authority has himself allowed the claim.  Since the issue is covered in the case of appellants themselves for a different period, we consider that in respect of all these cases, the nexus is available.  In respect of interior design consultancy service, scientific technical consultancy service, chartered accountant service, courier agency service, information technology software service, installation and commissioning service, manpower recruitment or supply service and storage and database service, we are satisfied with the explanation given as to how there is a nexus and the decisions cited by the learned counsel in support of the claim that there is nexus.  In view of the above, the impugned order is set aside and the appeal is allowed.(Operative portion of the order has been pronounced in open court)



S.K. MOHANTY
JUDICIAL MEMBER 
B.S.V.MURTHY
TECHNICAL MEMBER


Raja.2