2015 (11) TMI 1486 - AT - Service Tax

CENVAT Credit - credit for the input services like car parking, furniture rentals, DG Set charges, facility maintenance charges and so on used by the appellant for their Bangalore Head Office - Held that - In view of assessee s own previous case 2015 (11) TMI 679 - CESTAT BANGALORE there cannot be any two opinions that the appellant is entitled to cenvat credit for all these input services as well as for the facility of cenvat credit in case of the branches of the appellants which were earlier not found registered with the Service Tax Department. Non-registration, though the appellant pleads that they had made application and department did not do registration, may be by mistake, will not make them disentitled to the facility of cenvat credit for the input services which they have used for their output service; needless to say that all the input services which are subject matter of this case have nexus with the output service(s) of the appellants. - Decided in favour of assessee.

Summary

Issues:
1. Cenvat credit facility for inputs used in unregistered branches.
2. Claiming cenvat credit for input services used at the Head Office.
3. Nexus of certain services with output services.

Analysis:
1. The main issue in this case is regarding the cenvat credit facility for inputs used in branches that were not initially registered with the Service Tax Department. The appellant applied for registration of all branches under Service Tax law, but registration was granted only later. The appellant is entitled to cenvat credit for all input services used by the branches, as per Rule 2(l) of Cenvat Credit Rules 2004 and a previous decision by CESTAT. Non-registration of branches does not disentitle the appellant from claiming cenvat credit for input services with a nexus to the output services.

2. Another issue is the claiming of cenvat credit for input services like car parking, furniture rentals, DG Set charges, and facility maintenance charges used at the Bangalore Head Office. The appellant also got other branches registered with the Service Tax Department later. The definition of input service in Rule 2(l) includes services used by a provider of output service for providing an output service, which establishes the eligibility of the appellant for cenvat credit for these services.

3. The respondent argued that certain services like car parking and facility maintenance charges do not have a clear nexus with the output services of the appellant. However, the definition of input service in Rule 2(l) clearly outlines the broad range of services eligible for cenvat credit, including those used in relation to the provider's office or premises. The appellant's claim for cenvat credit for all input services is upheld, and the appeal is allowed with consequential benefits granted to the appellants based on the discussed analysis.