2015 (1) TMI 294 - AT - Central Excise

CENVAT Credit - rent-a-cab tour operator and air travel agent - lower authorities have held that such services cannot be held to be a cenvatable inputs services and have accordingly denied the credit - Held that - All the activities involved in the present case are Cenvatable credit input services. As such, I set aside the impugned order and remand the matter to the original adjudicating authority for verification of the invoices / bills etc. and to decide the availability of Cenvat credit accordingly - Following decision of Hindustan Coca Cola Beverages (P) Ltd. vs. CCE Hyderabad 2009 (6) TMI 474 - CESTAT, BANGALORE , CCE, Vadodara vs. Haldyn Glass Gujarat Ltd. 2009 (1) TMI 188 - CESTAT, AHMEDABAD and CCE Raipur vs. Beekay Engg. & Castings Ltd. 2009 (6) TMI 96 - CESTAT, NEW DELHI - Decided in favour of assesse.

Summary

Issues:
1. Availability of Cenvat credit for rent-a-cab tour operator and air travel agent services.

Analysis:
The judgment by Ms. Archana Wadhwa of the Appellate Tribunal CESTAT NEW DELHI addresses the issue of Cenvat credit availability for services provided by rent-a-cab tour operators and air travel agents. The appellant had availed such services, but the lower authorities denied the credit, stating that these services were not eligible as cenvatable input services. Ms. Wadhwa found the denial of credit for rent-a-cab services to be based on flimsy grounds, such as including parking charges and usage per day or per kilometer. She referenced various decisions, including those of the High Courts, to support the appellant's claim. For instance, she cited the case of Endurance Technologies Pvt. Ltd. vs. CCE, where it was held that services availed for celebrating the annual day function of a company were integral to business activities and thus eligible for credit.

Regarding tour operator services, Ms. Wadhwa noted that the issue had been settled in previous cases like Hindustan Coca Cola Beverages (P) Ltd. vs. CCE Hyderabad, where it was established that such services were eligible for Cenvat credit. Similarly, she mentioned that air travel agent services had been deemed modvatable/cenvatable in previous cases like Dr. Reddys Lab Ltd. vs. CCE and Semco Electrical Pvt. Ltd. vs. CCE Pune. Ms. Wadhwa concluded that all activities in the present case were indeed Cenvatable credit input services, overturning the lower authorities' decision to deny the credit. She set aside the impugned order and remanded the matter for further verification of invoices and bills to determine the availability of Cenvat credit in accordance with the Tribunal's decisions.

In summary, the judgment clarifies the eligibility of Cenvat credit for rent-a-cab tour operator and air travel agent services, emphasizing the precedents set by various decisions to support the appellant's claim. Ms. Wadhwa's thorough analysis and reliance on legal precedents ensure a fair and informed decision in favor of granting the Cenvat credit to the appellant.