HCL TECHNOLOGIES LTD. Vs. C.C.E., NOIDA
LAWS(CE)-2015-7-37
CUSTOMS EXCISE AND GOLD(CONTROL) APPELLATE TRIBUNAL
Decided on July 10,2015

HCL TECHNOLOGIES LTD. Appellant
VERSUS
C.C.E., Noida Respondents

JUDGEMENT

SULEKHA BEEVI - (1.)THE appeal is filed challenging the denial of Cenvat Credit.
1.2 The appellants are engaged in providing taxable service of Information Technology Service, Maintenance and Repair Service, Technical testing and Analysis Service and Business Support Service. They are also making export of services. The appellants are availing facility of Cenvat Credit. For the period October 2011 to December 2011 they filed refund claim under Rule 5 of the Cenvat Credit Rules 2004 read with Notification No. 05/2006 -CE(NT) dated 14.3.2006. The adjudicating authority rejected claim of refund of Rs. 29,10,826/ - on some input services. Aggrieved the appellants filed appeal, whereby the Commissioner (Appeals) allowed refund of credit of Rs. 77,540/ -. Thus Cenvat credit to the extent of Rs. 28,33,287/ - on various input services was disallowed. Aggrieved the appellant has preferred this appeal.
The details of input services for which refund was denied as per the impugned order is as under: - JUDGEMENT_37_LAWS(CE)7_2015.htm
(2.)THE claim of refund for Car parking Services was denied, referring to Notification No. 5/2006 -CE(N.T.) and held that there is no sufficient nexus between the input service and the service exported. The appellants relied on the judgments rendered in BCH Electric Ltd. Vs. CCE, Delhi -IV : 2013 (31) STR 68 (Tri. -Delhi), KPMG Vs. CCE, New Delhi : 2014 (33) STR 96 (Tri. -Delhi), CST, Bang. Vs. Mercedes Benz Research and Devlp. India Pvt. Ltd. : 2013 (30) STR 257 (Tri. -Bang.). In these cases it has been held that the service of renting Car parking space used for parking of the vehicles of the Officers/Employees of the assessee's Company has nexus with the business of the assessee and has to be treated as an activity related to business. Applying the ratio laid in the above judgments I find that appellants are entitled to credit of Rs. 37,427/ - towards car parking service.
(3.)THE appellant has claimed credit/refund of Room Service Charges of Rs. 1,442/ -. The payment, according to appellant, is made towards hotel bills for stay of auditor when he visited Chennai for audit of the appellant's Company. The inclusive part of the definition of input service includes auditing. According to the learned DR, this would be the fee/charges paid to the auditing firm/company and does not have any intentions to include everything in the name of audit. I fail to agree to this submission. Auditing is an essential activity for the Company. The definition of input services is so wide, and it does not restrict or confine the scope of the service mentioned in the inclusive part. Therefore, I hold that the appellants are entitled to the credit of Rs. 1,442/ - towards Room Service charges for auditing.
An amount of Rs. 28,292/ - has been disallowed towards the services of cleaning. As per the documents the services were dry cleaning of carpet, cleaning of chairs and glass etc. In the cases of paper products Ltd. Vs. CCE, Mumbai -III : 2013 (30) STR 310 (Tri. -Mum.) it has been held that cleaning services has nexus with business activity of manufacture when cleaning service are undertaken in the premises of the appellants Company. Therefore the view of the Department that it has no nexus with the output service exported is untenable. The credit on this score is allowed.

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