2017 (1) TMI 1577 - AT - Central Excise

CENVAT credit - input services - Courier services - erection of pucca shed - Held that - Service Tax paid in relation to Courier service and erection of Pucca Shed is covered under the scope of Input Services as defined under Rule 2(l) of the Cenvat Credit Rules 2004 as held by the Hon ble Gujarat High Court in the aforesaid M/s Cadila Healthcare Ltd 2013 (1) TMI 304 - GUJARAT HIGH COURT - appeal allowed - decided in favor of appellant.

Summary

Issues: Availment of Cenvat Credit on 'Courier' services and erection of 'pucca shed', eligibility of service tax paid on these services for credit, appeal against demand notice and penalty imposition.

Analysis:
1. Availment of Cenvat Credit: The appellant availed Cenvat Credit of ?1,10,559 on service tax paid for 'Courier' services and erection of 'pucca shed'. A show-cause-cum-demand notice was issued challenging the eligibility of the said credit, leading to confirmation of demand and imposition of penalty upon adjudication.

2. Eligibility of Service Tax for Credit: The appellant contended that the 'Courier' service and 'pucca shed' erection service qualify as 'Input Services' under Rule 2(l) of the Cenvat Credit Rules 2004. Reference was made to the judgments in the case of CCE, Ahmedabad vs Cadila Healthcare Ltd by the Hon'ble Gujarat High Court and Kitec Industries (I) Ltd vs CCE, Vapi by the Tribunal, establishing the eligibility of these services for credit.

3. Appeal Against Demand Notice: The appellant, through their Advocate, argued for the eligibility of 'Courier' service and 'pucca shed' erection service as 'Input Services'. The Revenue, represented by the Ld AR, reiterated the findings of the Ld Commissioner (Appeal) upholding the demand notice and penalty imposition.

4. Judgment: The Tribunal, after considering the precedents and definitions under Rule 2(l) of the Cenvat Credit Rules 2004, concluded that the Service Tax paid for 'Courier' service and erection of 'pucca shed' falls within the ambit of 'Input Services'. Citing the judgments by the Hon'ble Gujarat High Court and the Tribunal, the impugned order was set aside, and the appeal was allowed with any consequential relief as per the law.

This detailed analysis of the judgment highlights the issues of Cenvat Credit availment, eligibility of service tax for credit, the arguments presented, and the final decision rendered by the Tribunal, providing a comprehensive overview of the legal proceedings and outcome.