2017 (7) TMI 1239 - AT - Service Tax

CENVAT Credit - various input services - Renting of Immovable Property Service - Chartered Accountants Service - Repairs and Maintenance Service - Share Registry Service - Accounting Service - All India Glass Manufacturer Membership Service - Courier Service - Air Travel Agent s Service - Insurance Policy for the factory building, Plant Machinery. Held that - The Cenvat credit availed on service tax paid on input services, namely, Renting of Immovable Property Service, Insurance Premiums in relation to factory buildings, Courier Service, Advertisement Service, Accounting Service, Share Registry Service and Air Travel Agent s Service etc., are held to be input service within the definition of Rule 2(l) of CCR,2004 and admissible to credit in various judgements cited. The CENVAT Credit amount of ₹ 2,38,560/- has been accepted as inadmissible accordingly the same is recoverable with interest and penalty is reduced accordingly to ₹ 25,000/-. Appeal allowed in part.

Summary

Issues: Determination of entitlement to Cenvat credit of service tax paid on various services.

Analysis:
1. Issue: Entitlement to Cenvat credit of service tax paid on various services.
- The appellant contested the admissibility of Cenvat credit amounting to ?20,63,504/- for services like Renting of Immovable Property, Chartered Accountants Service, Repairs and Maintenance Service, Share Registry Service, Accounting Service, Glass Manufacturer Membership Service, Courier Service, Air Travel Agent’s Service, and Insurance Policy.
- The appellant accepted that a portion of the credit, ?2,38,560/- related to general insurance services post 01.04.2011, was not admissible.
- The appellant argued for the admissibility of the remaining Cenvat credit based on precedents from various Tribunal cases supporting their claim.

2. Judgment:
- The Tribunal examined the nature of the input services in question and their admissibility under Rule 2(l) of CCR, 2004.
- Cenvat credit for services like Renting of Immovable Property, Insurance Premiums for factory buildings, Courier Service, Advertisement Service, Accounting Service, Share Registry Service, and Air Travel Agent’s Service were deemed admissible as input services based on previous Tribunal judgments cited by the appellant.
- The Cenvat credit of ?2,38,560/- was acknowledged as inadmissible, leading to a recovery with interest, while the penalty was reduced to ?25,000/-.
- Consequently, the impugned order was modified to allow credit for various input services except for the mentioned inadmissible amount, resulting in a partial allowance of the appeal.

This judgment by the Appellate Tribunal CESTAT AHMEDABAD, delivered by Dr. D. M. Misra, Hon'ble Member (Judicial), clarified the entitlement to Cenvat credit of service tax paid on specific services, emphasizing the admissibility of certain input services based on established legal precedents while addressing the inadmissible credit amount in a balanced manner.