2015 (10) TMI 2217 - AT - Service Tax

Denial of CENVAT Credit - input services of Geological Consultant Service and Construction of Walls and Concrete Work - Held that - Order of that authority reveals that services of Geological Consultant was necessary for the mine, for which, the service tax was paid to avail his services. That makes the respondents eligible to the Cenvat credit of such tax. There is no dispute to that. - So far as the second issue of Construction of Walls and Concrete Work is concerned, learned Commissioner (Appeals) has shown justification as to requirement of the construction in the mining area. Therefore, there is no difference to the finding of the authority as to the eligibility of Cenvat credit of the services above availed i.e., for construction of Wall and Concrete Flooring used in mine. - Decided against Revenue.

Summary

Issues:
1. Jurisdiction of the Tribunal to decide issues not raised in the order of the Commissioner (Appeals).
2. Eligibility of Cenvat credit for Geological Consultant Service and Construction of Walls and Concrete Work in the mining area.

Analysis:
1. The judgment addresses the issue of the Tribunal's jurisdiction to decide matters not raised before it. It states that the Tribunal cannot create jurisdiction to decide an issue not before it, as well as not emanating from the impugned order. In this case, the Revenue appealed to the Tribunal raising issues beyond those considered by the Commissioner (Appeals). The law is clear that the Tribunal's scope is limited to the issues raised in the initial order.

2. The judgment focuses on the eligibility of Cenvat credit for services provided by a Geological Consultant and for the Construction of Walls and Concrete Work in the mining area. The Commissioner (Appeals) had already determined that the Geological Consultant Service was necessary for the mine, and the service tax was paid for it, making the respondents eligible for Cenvat credit. Similarly, the Construction of Walls and Concrete Work in the mining area was found justified by the Commissioner (Appeals), leading to the eligibility of Cenvat credit for these services as well. Consequently, the Tribunal upheld the findings of the Commissioner (Appeals) regarding the eligibility of Cenvat credit for both services.

In conclusion, the Tribunal dismissed the Revenue's appeal on both counts, affirming the eligibility of the respondents for Cenvat credit for the Geological Consultant Service and the Construction of Walls and Concrete Work in the mining area as determined by the Commissioner (Appeals).