2015 (5) TMI 1003 - AT - Central Excise

Denial of input service credit - Held that - Outdoor catering service - Cenvat credit is denied to the appellant to the tune of ₹ 16,10,227/- as the said amount they have paid on account of outdoor catering service. The said amount has been recovered by the appellant on subsidized food to the employees on which service tax works out to be ₹ 5,62,378/- which appellant has already reversed along with interest. Therefore, balance amount of input service credit is available to the appellant. Consultancy services - The said services has been has been used by the appellant for payment of auditing of the company as well as of legal services availed by them. Thus hold that appellant are entitled to avail input service credit on this service as held in the case of Ultratech Cement 2010 (10) TMI 13 - BOMBAY HIGH COURT . Life Insurance Services, Recruitment Services, Tour and Travel service - Denial of Cenvat credit on these services has also not been disputed by the appellant. Therefore same is denied and same has been paid by the appellant along with interest. Car Repair service - On car repair service, the appellant has reversed the Cenvat credit of ₹ 1,522/- along with interest of ₹ 839/- for the period post 1st April, 2011, but for the remaining period it is the claim of the appellant that car has been provided by the Company to the higher official for their use. The contention of the Revenue for denial of Cenvat credit is that these cars have been used personally by the higher officials of the company. But Revenue has not been able to produce evidence in support of their contention, therefore hold that appellant are entitled to take Cenvat credit on car services prior to 1.4.2011. Photography Service - The Cenvat credit of ₹ 3027/- has been denied to the appellant on the premise that these services have no nexus with the business activity of the appellant. The contention of the appellant is that seminars have been organized and during the course of seminars these photography services has been done which was ultimately used in the course of their business. Therefore, hold that appellant is entitled to take Cenvat credit on photography services as held by Hon ble High Court of Bombay in the case of Ultratech Cement (supra).

Summary

Issues:
- Denial of input service credit on various services including outdoor catering, consultancy engineering, life insurance, recruitment, tour and travel, car repair, and photography services.

Analysis:

Outdoor Catering Service:
The appellant was denied Cenvat credit for outdoor catering services. The appellant had paid a certain amount for subsidized food to employees, which included service tax. The appellant reversed the service tax amount along with interest. Therefore, the balance amount of input service credit was deemed available to the appellant.

Consultancy Services:
Regarding consultancy services, the appellant utilized them for auditing and legal services. The appellant was held entitled to avail input service credit on consultancy services based on a precedent set by the Hon'ble High Court of Bombay in the case of Ultratech Cement.

Life Insurance Services:
Cenvat credit for life insurance services was denied to the appellant. The appellant voluntarily reversed the Cenvat credit along with interest and did not contest the denial. Consequently, the Cenvat credit on life insurance services remained denied.

Recruitment Services:
The denial of Cenvat credit for recruitment services was not disputed by the appellant. Therefore, the denial was upheld, and the appellant reversed the credit along with interest.

Tour and Travel Service:
Similarly, the denial of Cenvat credit for tour and travel services was not contested by the appellant. The denial was maintained, and the appellant paid the amount along with interest.

Car Repair Service:
For car repair services, the appellant reversed the Cenvat credit for a specific period but claimed entitlement to credit for the period before 1st April 2011. The Revenue alleged personal use of cars by higher officials but failed to provide evidence. Consequently, the appellant was allowed to take Cenvat credit on car services before 1st April 2011.

Photography Service:
The denial of Cenvat credit for photography services was challenged by the appellant, who argued that the services were utilized during seminars for business purposes. The appellant's contention was supported by a precedent set by the Hon'ble High Court of Bombay in the Ultratech Cement case. Therefore, the appellant was deemed entitled to take Cenvat credit on photography services.

In conclusion, the issues regarding the denial of Cenvat credit for various services were individually addressed and decided upon. The appeal was disposed of based on the analysis and decisions made for each service.