2012 (10) TMI 932 - AT - Central Excise

Duty demand - Canteen Services Air Travel Agent rent-a-cab vehicle maintenance and mobile phones - Held that - in respect of Air Travel services the decision in the case of Dr. Reddy s Lab Ltd. 2009 (9) TMI 287 - CESTAT BANGALORE and in respect of vehicle maintenance the decision in the case of Hindustan Coco Cola Beverages Pvt. Ltd. - 2010 (4) TMI 323 - CESTAT BANGALORE are relevant. In respect of Car hire services Haldyn Glass Gujarat Ltd. 2009 (1) TMI 188 - CESTAT AHMEDABAD is relevant and in respect of Mobile Services the decision in the case of Indian Rayons & Industries 2006 (8) TMI 7 - CESTAT MUMBAI is relevant - appellant is not able to provide actual expenses incurred and admittedly Respondents were recovering some amount from the employees for providing canteen services only option available is to disallow the credit availed for canteen services. Since I have already agreed with the view that extended period could not have been invoked demand for service tax credit within the normal period of limitation is upheld with interest - Decided partly Revenue.

Summary

Issues:
1. Admissibility of Cenvat Credit on various services including canteen services, air travel agent, rent-a-cab, vehicle maintenance, and mobile phones.
2. Nexus of services with the manufacture for Cenvat Credit eligibility.
3. Application of extended period for demand of service tax credit.
4. Calculation of cenvat credit for canteen services based on actual expenses.

Analysis:
1. The case involved the appellant taking service tax credit on different services, leading to a show cause notice for inadmissible credit. The adjudicating authority confirmed the demands, but the appeal allowed the benefit of Cenvat Credit for all services, leading to the Revenue's appeal.

2. The Revenue argued that there was no nexus of services with manufacturing, thus credit inadmissible. However, after considering relevant decisions, the judge upheld the order in favor of the respondents based on precedents like Dr. Reddy's Lab Ltd. and Hindustan Coco Cola Beverages Pvt. Ltd.

3. Regarding the canteen services, the judge referred to the Ultra Tech Cement Ltd. case, stating that cenvat credit would be admissible based on actual expenses incurred, deducting recoveries from employees. The appellant's inability to calculate actual expenses led to disallowing the credit, limited to a specific amount within the normal period of limitation.

4. The judge agreed that the extended period could not be invoked due to the GTC Industries Ltd. decision, limiting the demand to the normal period. Consequently, the demand for service tax credit was upheld for a specific amount with interest, and no penalty was imposed on the respondent based on the circumstances of the case. The appeal and cross objection were disposed of accordingly.