2015 (12) TMI 950 - AT - Service Tax

Denial of Cenvat credit - Courier Service - consolidated Courier Bills of Entry - Denial of credit on the ground that it is post manufacturing activity - Held that - Cenvat credit on the input services is available if the same is availed by assessee in the course of their business of manufacturing of excisable goods. Admittedly, the respondent has availed the service in the course of their business of manufacturing. Therefore, the ld. Commissioner (Appeals) has rightly allowed the Cenvat credit on courier service. - For repair of fax machine, security service and insurance of Omni Van, all these have been used by the respondent in the course of their business in manufacturing. Therefore, I hold that they are entitled to Cenvat credit - Decided against Revenue.

Summary

Issues:
1. Denial of Cenvat credit on consolidated Courier Bills of Entry.
2. Denial of Cenvat credit on courier service as a post-manufacturing activity.
3. Denial of Cenvat credit on repair of fax machine, security service, and insurance of Omni Van.

Analysis:

1. The first issue pertains to the denial of Cenvat credit based on consolidated Courier Bills of Entry. The Revenue contended that Courier Bill of Entry is not a valid document for availing Cenvat credit as per Rule 9 of Cenvat Credit Rules, 2004. However, the Tribunal held that under the said rules, there is no specific classification of bills of entry. It was established that the respondent had correctly availed Cenvat credit based on Courier Bills of Entry. Therefore, the Tribunal ruled in favor of the respondent, stating that the Courier Bill of Entry qualifies as a specified document for availing Cenvat credit under Rule 9.

2. The second issue raised was the denial of Cenvat credit on courier service, with the argument that it constitutes a post-manufacturing activity. The Tribunal analyzed the Cenvat Credit Rules and determined that credit on input services is permissible if utilized in the manufacturing business. Since the respondent had indeed used the courier service in the course of their manufacturing business, the Tribunal upheld the decision of the ld. Commissioner (Appeals) in allowing the Cenvat credit on courier service. This decision was based on the premise that the service was availed within the scope of the manufacturing operations.

3. The final issue involved the denial of Cenvat credit on repair of fax machine, security service, and insurance of Omni Van. The Tribunal found that these services were utilized by the respondent in the course of their manufacturing business. Consequently, it was held that the respondent was entitled to claim Cenvat credit for these expenses. As a result, the Tribunal upheld the decision of the ld. Commissioner (Appeals) and dismissed the appeal, concluding that there was no flaw in the impugned order. The judgment affirmed the eligibility of the respondent to avail Cenvat credit for the specified services used in their manufacturing activities.