Case Law Details
Commissioner of Central Excise Vs Infosys Technologies Ltd. (CESTAT Kolkata)
The case of Commissioner of Central Excise vs. Infosys Technologies Ltd. (CESTAT Kolkata) revolves around the eligibility of credit for refund claims. In this article, we delve into the details of the case, the arguments presented by both sides, and the pivotal decision of the CESTAT Kolkata.
1. Background: Infosys Technologies Ltd., a prominent IT company in Bhubaneswar, Odisha, was engaged in providing Maintenance of Software Services, classified under Management, Maintenance, and Repair Service. As a 100% Export-Oriented Unit (EOU) registered under the Software Technology Park (STP) Scheme, Infosys used various input services for their output services and availed Cenvat credit. They exported their output services without paying Service Tax.
2. The Claim for Refund: Infosys filed a claim for refund of Cenvat Credit amounting to Rs. 90,88,508/- in accordance with Rule 5 of the Cenvat Credit Rules, 2004, read with Notification No. 5/2006-CE (NT) dated 14.03.2006. The claim was for the quarter ending January, 2008, to March, 2008, based on their inability to utilize the Cenvat Credit availed on certain input services.
3. Initial Rejection and Appeal: The original authority rejected the refund claim, stating that the input services were not directly or indirectly related to the output services. Infosys appealed this decision, leading to a remand by the Commissioner (Appeals). Subsequently, the Assistant Commissioner passed a De-novo Order-in-Original, partially sanctioning the refund but rejecting a significant portion.
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