Harman Connected Services Corporation India Pvt. Ltd. Vs Commissioner of Central Tax (CESTAT Bangalore)
Background of the Appeal
The appeal before CESTAT Bangalore challenged the order of the Commissioner (Appeals) dated 05.08.2020, which rejected the appellant’s refund claim on the ground that the conditions prescribed under Notification No. 12/2013-ST dated 01.07.2013 had not been fulfilled. The appellant, a provider of Information Technology Software Services, had filed a refund claim of Rs. 62,69,973 for the period October 2015 to December 2015 towards service tax paid on specified input services used for authorised operations in its SEZ unit. The Assistant Commissioner sanctioned Rs. 50,55,989 but rejected Rs. 12,13,983, holding that certain services were not included in the Approved List issued by the Development Commissioner of the SEZ. The Commissioner (Appeals) upheld this rejection, leading to the present appeal.
Appellant’s Contentions
The appellant contended that the impugned order failed to properly appreciate the provisions of the SEZ Act and the definition of input services. It argued that Business Auxiliary Services and Management and Business Consultancy Services were used for exporting taxable output services and for authorised operations within the SEZ. According to the appellant, the mere omission of these services from the Approved List issued by the Development Commissioner could not establish that they were not used for authorised operations.
