Mercedes Benz Research And Development India Pvt Ltd Vs Commissioner of Central Tax (CESTAT Bangalore)
Summary: M/s Mercedes Benz Research And Development India Pvt Ltd, engaged in export of Information Technology Software Service, challenged rejection of refund of CENVAT credit relating to Real Estate Agency Service and Works Contract Service. The refund claim for April to June 2017 was filed under Notification No.27/2012 dated 18th June, 2012 issued under Rule 5 of CENVAT Credit Rules, 2004. Against the total claim of Rs.21,62,10,528/-, the Assistant Commissioner sanctioned Rs.20,88,79,249/- and rejected Rs.12,54,357/- on the ground of ineligible credit relating to Event Management Service, Real Estate Agency Service and Works Contract Service.
The Commissioner (Appeals) subsequently rejected the refund attributable to Real Estate Agency Service and Works Contract Service. Before the Tribunal, the appellant confined the dispute to Rs.5,78,234/- and contended that the services had been rejected by adopting an unduly restrictive interpretation of the definition of Input Service. It was submitted that Real Estate Agency Service assisted in identifying the office premises from which exported software services were rendered and therefore had a direct nexus with the appellant’s primary business requirement. In relation to Works Contract Service, the appellant submitted that the services concerned repair and maintenance of office premises and were essential for the smooth operation and efficient provision of output services.
