2015 (3) TMI 1123 - AT - Service Tax

Cenvat Credit - eligible input services - (a) Security Service received in residential colony and guest house; (b) Pest Control service received in employees residential colony; (c) Repair and Maintenance of air coolers in residential colony; (d) Maintenance of river pump and security service received at guest house. - Held that - Cenvat credit availed on service tax on various services received at the residential colony of the appellant are ineligible for Cenvat credit, as has been authoritatively held by the Hon ble Bombay High Court in the case of Manikgarh Cement 2010 (10) TMI 10 - BOMBAY HIGH COURT . To that extent the appeals of the appellant fails. - As regards the various services received at residential colony i.e. pest control service, maintenance of air coolers and electrical & other maintenance, I. had already held that Cenvat credit is not eligible on the service tax paid by the service providers. To that extent the appeals of the appellant fails. Extended period of limitation - Held that - appellant has made out a case for service tax credit which sought to be denied and is beyond the limitation period. To that extent, the impugned orders are set aside and the appeal is allowed. The demand in this appeal within the limitation period is upheld along with interest. - Decided partly in favor of assessee.

Summary

Issues involved: Eligibility of Cenvat Credit on various services including security service, pest control service, repair and maintenance services, and maintenance of river pump and security service at a guest house.

Analysis:
- The appeals revolve around the eligibility of Cenvat Credit for service tax paid on different services utilized by the appellant, all related to their manufacturing activity of Cement in a remote area.
- The appellant argued that services like security service at the guest house and maintenance of river pump were essential for their business activities and thus eligible for Cenvat Credit.
- The Revenue, on the other hand, contended that services received at the residential colony were not eligible for credit based on a judgment by the Hon'ble Bombay High Court in a similar case.
- The tribunal examined the submissions from both sides and referred to relevant case laws to make its decision.

- The tribunal found that Cenvat Credit on services received at the residential colony was not eligible based on the precedent set by the Hon'ble Bombay High Court in a previous case.
- However, in a specific appeal where the show cause notice was issued beyond the limitation period, the tribunal ruled in favor of the appellant, allowing the service tax credit.
- Regarding the maintenance of the river pump, the tribunal noted that if the pump was used for the manufacturing activity, the Cenvat Credit should be allowed, contrary to the Revenue's argument.
- The tribunal also allowed Cenvat Credit for security services at the guest house based on a previous decision by the bench in a different case.

- Since the issue primarily concerned the interpretation of Cenvat Credit eligibility, the tribunal did not find grounds for imposing penalties on the appellant.
- The tribunal set aside the penalties imposed by lower authorities and directed the appellant to discharge the demand and interest as per the judgment.

- In conclusion, the tribunal disposed of all appeals based on the findings related to each service and upheld the eligibility of Cenvat Credit for specific services while denying it for others, following relevant legal precedents and arguments presented by both parties.