2014 (5) TMI 503 - AT - Service Tax

CENVAT Credit - Whether the appellant is eligible for CENVAT credit of service tax paid - Held that - in this case the Commissioner (Appeals) had allowed the benefit of CENVAT credit on several services against which the department is in appeal and in respect of some services it was not allowed and assessee is in appeal. Where the benefit has not been allowed, the same has not been allowed with a simple observation that these are not covered under definition of input service and has no nexus with the manufacture without any further details - Since in respect of the services under dispute in this case, the decisions cited above have taken a view that credit is admissible and the issue is no longer res integra, the appeals filed by the assessee are to be allowed - Decided against Revenue.

Summary

Issues:
- Eligibility for CENVAT credit on various services

Analysis:
In the judgment by Appellate Tribunal CESTAT BANGALORE, it was noted that the appeals under consideration involved the issue of whether the appellant is eligible for CENVAT credit on multiple services. The Commissioner (Appeals) had allowed the benefit of CENVAT credit on certain services, leading to appeals by both the Revenue and the appellant-assessee. The main contention was whether the services in question qualified as 'input services' for the purpose of CENVAT credit. The Tribunal observed that the decisions of the Hon'ble High Court of Karnataka and previous Tribunal rulings had already settled the issue that credit is admissible for the disputed services. Therefore, the appeals filed by the assessee were allowed, while the Revenue's appeal was rejected as the services in question were covered by the established precedents.

Regarding Appeal No.E/957/2009 specifically, it was highlighted that there was a lack of detailed discussion by the adjudicating authority or the Commissioner (Appeals) on the issue at hand. Both parties agreed that the matter needed to be remanded for fresh consideration. Thus, the issue in the Revenue's Appeal No.E/957/2009 was remanded to the original adjudicating authority for a thorough reevaluation on merits. The authority was directed to provide an opportunity for the respondents to present their case, consider all relevant submissions, and refer to precedent decisions to arrive at a well-reasoned order.

In conclusion, the judgment clarified the eligibility for CENVAT credit on various services, emphasizing the importance of detailed consideration and adherence to established legal precedents in such matters. The decision provided clarity on the admissibility of credit for the disputed services based on existing judicial rulings, ensuring a fair and consistent application of the law in similar cases.