2015 (11) TMI 1570 - AT - Service Tax

Cenvat credit - input services received by assessee at its un-registered premises - credit taken for the service under Renting of Immovable Property for rent paid for the unregistered premises - Held that - the premises are not covered in the listed premises in their Centralised R.C. Thus, this premises cannot be said to be used for providing output service.

Summary

Issues:
1. Availability of credit on input services received at unregistered premises.
2. Input credit on invoices without PAN-based Registration No. of Service provider.
3. Eligibility for Cenvat credit on CHA services for import of equipment.
4. Availability of input credit on courier services received.
5. Eligibility for input credit on Event Management Services.
6. Eligibility of 'Renting of auditorium Service' for recruitment of employees as an input service.

Analysis:

1. The first issue revolves around the availability of credit on input services received at an unregistered premises. The Revenue argued that credit was taken for renting an unregistered premises, which they claimed was not used for providing output services. However, the respondent contended that the premises were later included in their centralised R.C. and invoices for output services were raised from the registered office. Relying on precedents from the Karnataka and Bombay High Courts, the Tribunal rejected the Revenue's argument, stating that as long as services are used for providing taxable output services, Cenvat credit can be availed.

2. The second issue concerns input credit on invoices lacking the PAN-based Registration No. of the service provider. The Tribunal referred to a previous ruling in favor of the respondent, establishing that such invoices are acceptable for claiming input credit. Consequently, this ground was also rejected.

3. The third issue addresses the eligibility of Cenvat credit on CHA services for importing equipment. Citing precedents, the Tribunal ruled in favor of the respondent, rejecting the Revenue's argument against allowing the credit.

4. The fourth issue pertains to the availability of input credit on courier services received. The Tribunal, relying on a precedent, decided in favor of the respondent, dismissing the Revenue's contention against granting the credit.

5. The fifth issue involves the eligibility of input credit on Event Management Services. Referring to a previous case, the Tribunal rejected the Revenue's argument, affirming the respondent's entitlement to the credit.

6. The final issue is whether 'Renting of auditorium Service' used for recruiting employees qualifies as an input service. The Tribunal, supported by a precedent and a CBEC Circular, decided in favor of the respondent, rejecting the Revenue's argument against considering the service as an input. Consequently, all grounds raised by the Revenue were dismissed, affirming the respondent's eligibility for Cenvat credit and refund as an exporter of services. The Adjudicating authority was directed to grant any balance refund within a specified timeframe.