2010 (7) TMI 1111 - AT - Central Excise

CENVAT credit - Car Insurance Policy - Baggage Cover Policy - Cash Transit Insurance - Executives Club Expenses - Outstation Travel Services - Hotel Services for Executives.

Summary

Issues:
1. Disallowance of credit of service tax on various policies and services.
2. Admissibility of credit of service tax on specific services as per Tribunal decisions.
3. Appeal against extension of credit of service tax on different services.
4. Admissibility of credit of service tax on additional services based on Tribunal decisions.

Analysis:
1. The judgment addresses the disallowance of credit of service tax on Car Insurance Policy, Baggage Cover Policy, Cash Transit Insurance, Executives Club Expenses, Outstation Travel Services, and Hotel Services for Executives. The counsel for the assessees concedes the disallowance of credit for certain services but argues for the admissibility of credit for Car Insurance Policy and Outstation Travel Services based on Tribunal decisions.

2. The Vice President refers to specific Tribunal decisions to support the admissibility of credit for Car Insurance Policy and Outstation Travel Services. Citing cases such as Hindustan Coca-cola Beverages Pvt. Ltd. and Noble Grain India Pvt. Ltd., the Vice President allows the appeal for the credit of &8377; 37,697/- and &8377; 17,444/-, respectively. The Revenue challenges the extension of credit on various other services, including Group Mediclaim Policy, Directors and Officers Liability Policy, and Canteen Equipment. The Vice President upholds the extension of credit for certain services based on relevant Tribunal decisions.

3. Regarding the extension of credit on services like Cab Services and Car and Vehicle Repair Services, the Vice President relies on Tribunal decisions such as Commissioner of Central Excise, Nasik vs Cable Corporation of India Ltd. and Kirloskar Oil Engines Ltd. to support the admissibility of credit. Upholding the orders of the Commissioner (Appeals), the Vice President allows the extension of credit on Cab Services and Car and Vehicle Repair Services.

4. In conclusion, the Vice President upholds the impugned order, rejects the appeal, and dismisses the cross objection related to the Revenue's appeal. The judgment extensively relies on Tribunal decisions to determine the admissibility of credit of service tax on various policies and services, ensuring consistency with established legal precedents.