2014 (2) TMI 776 - AT - Service Tax

Entitlement to CENVAT Credit - Whether the appellants are entitled for input service credit on telephone services which are installed at the residence of their officers and air travel agent services undertaken by their officers as per Rule 2 (l) of CENVAT Credit Rules, 2004 - Held that - any service which has nexus with the business activity of the appellant, whether it is manufacturing or rendering service, has to be treated as input service coming within the purview of Rule 2(l) of the CENVAT Credit Rules, 2004. Undisputedly, in this case, the telephone service and air travel services has been availed by the appellants in the course of business activity as a manufacturer of excisable goods. Therefore, the issue is no more res integra - Following decision in the case of Ultra tech Cement Ltd. 2010 (10) TMI 13 - BOMBAY HIGH COURT - Decided in favour of assessee.

Summary

The appellate tribunal ruled in favor of the appellant, allowing input service credit on "telephone services" and "air travel agent services" as they have nexus with the business activity, citing Rule 2(l) of CENVAT Credit Rules, 2004. The judgment was based on a precedent set by the Hon'ble High Court of Bombay in the case of Ultra tech Cement Ltd. The impugned order was set aside, and the appeal was allowed with consequential relief. Stay application was also disposed of.