2011 (10) TMI 363 - AT - Service Tax

Cenvat Credit on various input services - Held That - Tribunal in (2011 -TMI - 210543 - CESTAT AHMEDABAD), has held that CENVAT Credit in respect of service tax paid on outdoor catering service, air travel service, tour operator service, business exhibition service, photography service, repair of motor car, have been held to be admissible. Service tax relating to personal accident policy, group accident personal policy, outdoor catering service and insurance - Held That - In view of CCE Raipur Vs H.E.G. Ltd (2010 -TMI - 78932 - CESTAT, NEW DELHI) credit allowed.

Summary

Issues:
- Admissibility of CENVAT Credit for various input services
- Interpretation of the definition of input service
- Application of previous tribunal decisions in determining admissibility of CENVAT Credit

Analysis:
The case involved the appellants engaged in manufacturing excisable goods under specific chapters of the Customs Excise Tariff Act, 1985. The dispute arose when officers challenged the admissibility of CENVAT Credit for services like management, maintenance, repair, insurance, and various other services utilized by the appellants. Proceedings were initiated, resulting in the confirmation of CENVAT Credit amounts along with interest and penalties under Rule 15(3) of CENVAT Credit Rules, 2004.

The advocate for the appellant argued that the eligibility of CENVAT Credit for the disputed input services had been established through previous tribunal decisions. Specifically, citing a previous order related to the appellant's case, it was highlighted that CENVAT Credit for services like outdoor catering, air travel, tour operation, photography, and others had been deemed admissible. The advocate pointed out various tribunal decisions supporting the admissibility of CENVAT Credit for services such as maintenance of vehicles, insurance, repair of plants, and machinery, among others.

Moreover, the advocate contested the revenue's interpretation of the definition of input service, referencing a High Court decision that invalidated the revenue's stance. Ultimately, the judge, Mr. B.S.V. Murthy, concluded that the appellant was indeed eligible for CENVAT Credit based on the precedents and legal interpretations presented. Consequently, the impugned orders were set aside, and the appeals were allowed, providing consequential relief to the appellant as deemed necessary.