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2013 (6) TMI 606 - AT - Service TaxCenvat Credit - Input services - export of goods - CHA service - rent-a-cab service - Held that - So far as the CHA services are concerned, to the extent the same have been used for clearance of imported goods used by the appellant for manufacture the same without any doubt, would be covered by the definition of input service and would be eligible for cenvat credit. As regards the rent a cab services, the same would be eligible for cenvat credit if rent a cab services had been used by the employees of appellant company for the company s work. The Tribunal in the case of Commissioner of Central Excise, Raipur Vs. Beekay Engg. & Castings Ltd. 2009 (6) TMI 96 - CESTAT, NEW DELHI , Dr. Reddy s Lab Ltd. Vs. Commissioner of Central Excise, Hyderabad, 2009 (9) TMI 287 - CESTAT, BANGALORE and Commissioner of Central Excise, Vishakhapatnam Vs. Andhra Pradesh Paper Mills Ltd. 2010 (2) TMI 532 - CESTAT, BANGALORE has held that when rent a cab services is availed by the officials of company for company s work the same would be eligible for cenvat credit. However the crucial question in this case is as to whether the services, in question, were used for the company s work. Though on this point the appellant from the very beginning, have pleaded that this fact is verifiable from the invoices, the lower authorities have not given any finding on this point. Accordingly on this point the matter requires to be remanded. - Decided in favor of assessee.
Issues:
- Denial of cenvat credit for CHA services used for clearance of imported goods and export consignments - Denial of cenvat credit for rent a cab services used for company's work - Imposition of penalty and interest Analysis: 1. The appellant, a manufacturer of springs and spring leaves chargeable to Central Excise duty, availed cenvat credit of Excise Duty paid on inputs and services tax paid on input services. The dispute arose regarding the cenvat credit claimed for Customs House Agents (CHA) services used for clearance of imported raw materials and export consignments, as well as rent a cab services used for the company's business activities. 2. The Deputy Commissioner confirmed a cenvat credit demand against the appellant, which was upheld by the Commissioner (Appeals). The appellant contended that CHA services for clearance of imported goods should be eligible for cenvat credit, citing precedents supporting their claim. Similarly, they argued that rent a cab services used for company-related activities should also qualify as 'input services' under the Cenvat Credit Rules. 3. The appellant relied on legal judgments to support their position, emphasizing that CHA services for export clearance at the port should be considered eligible for cenvat credit. They also pointed out that rent a cab services used for business purposes have been deemed eligible for credit in previous cases. 4. The Jt. CDR defended the denial of cenvat credit, asserting that CHA services for export clearance post-factory removal and rent a cab services lacked evidence of being used for the company's work. The impugned order was supported on these grounds. 5. The Tribunal considered the arguments from both sides and reviewed the records. It concluded that CHA services for clearance of imported goods and export consignments were eligible for cenvat credit based on legal precedents. However, regarding rent a cab services, the lack of evidence on whether they were used for the company's work necessitated a remand to the Commissioner (Appeals) for further examination. 6. The Tribunal set aside the Commissioner (Appeals)'s decision upholding the denial of cenvat credit for both CHA and rent a cab services. The matter was remanded for fresh consideration, specifically focusing on the evidence of the cabs being used for the company's work. The appellant would be eligible for cenvat credit if such usage was established. 7. The Tribunal's decision resulted in the disposal of the appeal, directing a reassessment of the cenvat credit denial for rent a cab services while upholding the credit eligibility for CHA services related to imported goods and export clearance at the port. The remand allowed for a more thorough examination of the evidence to determine the applicability of cenvat credit in the case.
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