2014 (5) TMI 141 - AT - Service Tax

CENVAT Credit - maintenance and repair services - Held that - As regards the denial of credit in respect of maintenance and repair services for the DG sets, air conditioner and UPS located in offices and show rooms, I find that the issue is covered by the Tribunal s decision in the case of CCE Vs. Cadila Healthcare - 2013 (1) TMI 304 - GUJARAT HIGH COURT . The maintenance and cleaning services of the office premises as also the residential colony has been held to be Cenvatable input services in the case of CCE Hyderabad Vs. ITC Ltd. 2011 (11) TMI 516 - ANDHRA PRADESH HIGH COURT and stands followed by the Tribunal in the number of decisions - Decided in favour of assessee.

Summary

Issues:
1. Disposal of appeals arising from the same impugned order passed by the Commissioner (Appeals).
2. Allowance and disallowance of Cenvat credit for various services.
3. Relying on previous decisions to support the allowance of Cenvat credit.
4. Denial of credit for maintenance and repair services for specific equipment.
5. Decision outcome on appeals and stay petition.

Analysis:
1. The judgment addresses the disposal of appeals filed by both the Revenue and the assessee, which arose from the same impugned order issued by the Commissioner (Appeals). The appeals are being disposed of through a common order to streamline the process efficiently.

2. The appellate authority allowed Cenvat credit for services such as banquet service, CHA service, event management service, interior decoration, catering services, mandapkeeper service, and rail/air travel service. However, Cenvat credit was disallowed for maintenance and repair services, as well as maintenance and cleaning services. Both parties appealed against the respective parts of the impugned order, leading to a detailed examination of the Cenvat credit eligibility for each service.

3. The Commissioner (Appeals) relied on previous decisions, including those of the Tribunal and the Hon'ble High Court, to support the allowance of Cenvat credit for various services. Multiple Tribunal decisions were cited to establish the eligibility of certain services as Cenvatable input services. The Revenue failed to provide any substantial reason to challenge these established precedents.

4. Regarding the denial of credit for maintenance and repair services related to specific equipment like DG sets, air conditioners, and UPS in offices and showrooms, the judgment referenced a Tribunal decision in the case of CCE Vs. Cadila Healthcare. Additionally, maintenance and cleaning services for office premises and residential colonies were deemed as Cenvatable input services based on previous Tribunal decisions and supported by the case of CCE Hyderabad Vs. ITC Ltd.

5. Ultimately, the judgment allowed the assessee's appeal while rejecting the Revenue's appeal. The stay petition was also disposed of, providing a conclusive decision on the issues raised in the appeals. The judgment was pronounced in court on 17th April 2014, marking the resolution of the legal proceedings.