2009 (6) TMI 874 - AT - Central Excise

CENVAT credit - scope of input services - various input services - Rule 2 of the Cenvat Credit Rules, 2004 -

Summary

Issues:
- Stay of operation of the impugned order regarding Cenvat credit for certain services for the month of May, 2005.

Analysis:
The judgment deals with an application filed by the department seeking a stay of operation of the impugned order related to the entitlement of Cenvat credit for specific services for the month of May, 2005. The Commissioner (Appeals) had held that the assessee is entitled to Cenvat credit for six services recognized as 'input services' under the Cenvat Credit Rules, 2004. These services include professional services for pay roll preparation, rent-a-cab service for business activities, management consultancy and Chartered Accountant service for auditing, business auxiliary services for share marketing, certification of PAN cards of company employees, and banking and financial services.

Upon hearing both parties and considering their submissions, the judge opined that the decision of the lower appellate authority regarding most services, except for the certification of PAN cards, was correct. The judge noted that the credit taken for the certification of PAN cards amounted to a meagre sum of Rs. 77, whereas the bulk of the credit was allowed on services that met the criteria of 'input services' as per Rule 2 of the Cenvat Credit Rules. Consequently, the judge dismissed the department's application for a stay of the impugned order.

In conclusion, the judgment upholds the entitlement of the assessee to Cenvat credit for various services deemed as 'input services' under the Cenvat Credit Rules, 2004, for the month of May, 2005. The decision emphasizes the importance of adhering to the defined criteria for claiming such credits and highlights the significance of the nature of services in determining their eligibility for Cenvat credit.