2013 (5) TMI 244 - AT - Central Excise

Cenvat credit denied - travel agents services on the basis of invoices issued by the Head Office as input service distributor - Held that - There is no dispute that journeys in respect of which the same had been received, had been undertaken by the officers of the appellant company in connection with company s business. Thus cenvat credit would be admissible in respect of this service - in favour of assessee. Services of maintenance of the Head office - Held that - It has to be treated as in relation to manufacturing of business of the appellant. Therefore, this service would also be covered by the definition of input service - in favour of assessee.

Summary

Issues:
1. Eligibility of cenvat credit for services availed by the appellant company.
2. Interpretation of the definition of input service for cenvat credit.
3. Applicability of previous Tribunal judgments on similar cases.

Analysis:
The appellant, a manufacturer of pipes and tubes, sought cenvat credit for services availed at their Head Office in Gurgaon during April 2007 to October 2008. The services included travel agent services and office maintenance, both invoiced by the Head Office as an input service distributor. The Department contended that these services did not fall under the definition of input service, leading to the confirmation of cenvat credit demands and penalties by the Assistant Commissioner, later upheld by the Commissioner (Appeals).

The appellant argued that the travel agent services for business activities and office maintenance services were eligible for cenvat credit, citing relevant Tribunal judgments. The Departmental Representative reiterated that none of the services qualified as input services. Upon hearing both sides, the Tribunal Judge considered the submissions and records.

Regarding the travel agent services, the Tribunal found that the journeys were undertaken by the appellant's officers for business purposes, aligning with the precedent set by the Tribunal in a similar case. Thus, cenvat credit for these services was deemed admissible. In the case of office maintenance services, the Tribunal determined that such services were related to the manufacturing or business of the appellant, falling within the definition of input service.

Consequently, the Tribunal concluded that the impugned orders denying cenvat credit were unsustainable. Therefore, the orders were set aside, and the appeals were allowed in favor of the appellant.