2010 (10) TMI 290 - AT - Central Excise

Cenvat credit - Input - denial of Cenvat credit on HR plates, coils and jointing sheet - Held that the appellants own case, for earlier period, this Tribunal has allowed the credit to the appellants and same has not been challenged by the department - Thus, the appellant is entitled to avail cenvat credit on HR plates, coils and jointing sheets. Cenvat credit - Input - Input service credit on running and maintenance and repair of motor car and rent a cab which are used by the company s employees for transporting their employees from the residences to the business premises which is an input service as held by this Tribunal in the case of J.K. Cement Works - Hence, the appellant is entitled to input service on this inputs. Cenvat credit - Input - Regarding credit of mandap keeper service, the hall had been booked by the appellant to held their Annual General Meeting which is definitely a business activity - Hence they are entitled to get the credit of the sa.e

Summary

Issues:
1. Denial of cenvat credit on HR Plates, coils, and jointing sheets.
2. Denial of input service credit on rent a cab service, maintenance, and repair of motor car.
3. Denial of input service credit on mandap keeper service.

Analysis:
1. The appellant appealed against the denial of cenvat credit on HR Plates, coils, and jointing sheets, along with the imposition of penalties. The appellant's representative argued that a previous Tribunal order and a decision of the Rajasthan High Court supported their claim for cenvat credit. The Tribunal agreed with the appellant, citing the previous order that allowed the credit, which had not been challenged by the department, thus entitling the appellant to the cenvat credit on HR Plates, coils, and jointing sheets.

2. The denial of input service credit on rent a cab service and maintenance and repair of motor car was also contested. The appellant's representative argued that these services were essential for the business activities, as employees were transported from residences to the business premises for procurement purposes. The Tribunal referenced a previous case to support the appellant's claim, stating that these services qualified as input services. Consequently, the appellant was deemed entitled to input service credit for rent a cab service and maintenance and repair of motor car.

3. The denial of input service credit on mandap keeper service was also challenged. The appellant had booked a hall for their Annual General Meeting, which was considered a business activity. The Tribunal concluded that the appellant was entitled to credit for the mandap keeper service as it was directly related to their business activities. Therefore, the impugned order was set aside, and the appeal was allowed in favor of the appellant.