2010 (10) TMI 132 - AT - Service Tax

Cenvat credit of service tax Input service - Air Ticket Booking Service credit denied on the ground that this did not have any nexus in manufacture of final products which is the requirement for eligibility of credit availed - lower appellate authority has built in a safeguard that credit is to be allowed subject to the condition that the air journeys undertaken are for business purposes only - no reason to interfere with the impugned order and reject the appeals

Summary

The Revenue appealed against Commissioner's decision to extend cenvat credit on "Air Ticket Booking Service". The appellate tribunal upheld the decision, stating that credit is allowed only if air journeys are for business purposes. The appeal was rejected.