2017 (9) TMI 1629 - AT - Central Excise

CENVAT credit - input services - Convention Service - Membership of Club or Association Service - Renting of Immovable Property Service - Rent-a-cab Service - Repair of Motor Vehicle Service - Held that - in various judgements, the respective services have been held to be Input service as defined under Rule 2(l) of CCR, 2004, accordingly, the service tax paid on these services is admissible to credit - appeal allowed - decided in favor of appellant.

Summary

Issues: Admissibility of CENVAT credit on service tax paid on various services like Convention Service, Membership of Club or Association Service, Renting of Immovable Property Service, Rent-a-cab Service, and Repair of Motor Vehicle Service during December 2010 to September 2013.

Analysis:

1. Admissibility of CENVAT Credit: The central issue in the present Appeals was the admissibility of CENVAT credit on service tax paid on different services. The appellant argued that they were entitled to CENVAT credit based on specific judgments related to each service. These included cases such as Hindustan Petroleum Corporation Ltd. Vs. CCE & ST, M/s. Ester Industries Ltd. Vs. Commissioner of Central Excise, India Trimmings Pvt. Ltd. Vs. Commissioner of Central Excise, Principal Commissioner vs. Essar Oil Ltd., Birla Corporation Limited vs. Commissioner of Central Excise, and Commissioner of Central Excise vs. J.K. Cement Works. The appellant contended that none of the services were used for personal purposes and did not fall under the exclusion clause after 01.04.2011.

2. Legal Interpretation: The Ld. Advocate for the appellant emphasized that the services in question had been considered 'Input service' as defined under Rule 2(l) of CCR, 2004 in the cited judgments. This interpretation supported the admissibility of the service tax paid on these services for claiming credit. The Tribunal, in its analysis, found merit in the appellant's arguments and referred to the established legal precedent to support their decision.

3. Decision and Outcome: Ultimately, the Tribunal set aside the impugned order and allowed the appeals with consequential relief, if any, as per the law. The judgment highlighted the importance of legal interpretations and established case laws in determining the admissibility of CENVAT credit on service tax paid on various services. By aligning with the precedents and legal definitions, the Tribunal provided a clear decision in favor of the appellant, emphasizing the significance of proper legal arguments and references in such cases.

In conclusion, the judgment by the Appellate Tribunal CESTAT AHMEDABAD, delivered by Dr. D. M. Misra, focused on the admissibility of CENVAT credit on specific services and highlighted the critical role of legal interpretations and established case laws in reaching a decision. The detailed analysis and reference to relevant judgments underscored the importance of legal precision in tax matters to ensure fair and accurate outcomes.