2015 (11) TMI 717 - AT - Service Tax

Availment of CENVAT Credit Outdoor catering service Services availed in March 2011 but credit taken in April 2011 Definition of Input service excluded these services from 1.04.2011 Held That - Service which have been received by assessee before 1-4-2011 credit would be available even if the payment of the said appeal stand on or after 2011 as per sub-rule 4(7) Issue also clarified in Board Circular No. 943/04/2011-EX. Decided in favour of assessee.

Summary

Issues:
1. Credit of Service Tax availed by the appellant for outdoor catering services.
2. Interpretation of Cenvat Credit Rules regarding the availability of credit for services received before and after a specific date.

Analysis:
1. The case involved the confirmation of Service Tax credit amounting to &8377;60,214 against the appellant for outdoor catering services received in March 2011 but paid for in April 2011. The lower authorities contended that since outdoor catering services were excluded from the definition of "input service" from April 1, 2011, the credit should not be available. However, it was undisputed that the services were indeed availed in March 2011, falling within the period when they were considered input services. The appellant availed the credit in April 2011 after payment, as per the prevailing law at that time.

2. The Tribunal referred to a previous decision (Order Nos. 1441-1442/2009(SM)(BR), dated 12-11-2009) to support the appellant's position. Additionally, a change in the Cenvat Credit Rules was highlighted, specifically sub-rule 4(7), which allowed credit for services received before April 1, 2011, even if payment was made after that date. This rule was further clarified by Board Circular No. 943/04/2011-EX, dated 29-4-2011, emphasizing that credit for services completed before April 1, 2011, was permissible regardless of the payment date.

3. The Tribunal found that the Commissioner (Appeals) did not address the relevant provisions of Rule 4(7) and the circular, which should have been considered in a fair assessment of the appeal. Consequently, the impugned order was set aside, and the appeal was allowed in favor of the appellant, granting consequential relief. The stay petition and appeal were disposed of accordingly, ensuring the appellant's entitlement to the Service Tax credit for the outdoor catering services received in March 2011.