Learned CA submits that the maintenance of DG sets is essentially and integrally connected to rendering the business and no export of service can take place if there is no uninterrupted power supply and, therefore, the said services should be treated as ‘input services’. We are prima facie, in agreement with views expressed by learned CA that the impugned services could be treated as ‘input services’ in respect of services rendered by the appellant.
The disputed amount has not been realized as service tax from the person to whom service is provided. It is also to be noted that appellant had not filed a service tax return and the amount deposited in that tax account of the Government becomes payment towards service tax only when return is filed. Therefore, in this case, it is a strictly not a refund of service tax paid.
The brief facts of the case are that assessee has filed its return of income on 20th September, 2008 for assessment year 2008-09 declaring nil income after claiming deduction of Rs. 332,29,787 under sec. 80-IC of the Act. Similarly in assessment year 2009-10, the assessee filed its return of income on 25th September, 2009 declaring nil income by claiming a deduction of Rs.299,88,505 under sec. 80-IC of the Act.
