2018 (4) TMI 1605 - AT - Central Excise

CENVAT Credit - input service - Courier Services used for samples sending and documents to the customers - Held that - Courier Service which has been used for sending documents, samples, etc. is held to be an input service as defined under Rule 2(l) of CCR, 2004, by this Tribunal in the case of m/s Haldyn Glass Ltd vs. CCE & ST Vadodara-I 2017 (8) TMI 1217 - CESTAT AHMEDABAD - credit allowed - appeal allowed - decided in favor of appellant.

Summary

Issues:
Entitlement to credit of service tax paid on 'Courier Services' used for sending samples and documents to customers.

Analysis:
The appeal was filed against the Order In Appeal passed by the Commissioner of Central Excise (Vadodara). The central issue revolved around whether the appellant was entitled to credit of service tax paid on 'Courier Services' utilized for sending samples and documents to customers. The appellant's advocate referenced a prior order in their favor to support their case. On the other hand, the Revenue's representative reiterated the Commissioner (Appeals) findings.

The Tribunal examined the nature of 'Courier Services' used for sending documents and samples and concluded that such services qualify as 'input services' as per Rule 2(l) of CCR, 2004. This determination was supported by a previous judgment in the case of m/s Hylden Glass Ltd vs. CCE & ST Vadodara-I. The Tribunal held that the service tax paid on such 'Courier Services' is eligible for CENVAT credit. Consequently, the impugned order was deemed without merit and set aside. The appeal was allowed, with any consequential relief to be provided as per the law.

In conclusion, the Tribunal's decision was based on the interpretation of 'Courier Services' as 'input services' under the relevant rules, supported by a precedent judgment. The ruling favored the appellant's entitlement to credit for service tax paid on such services, leading to the setting aside of the initial order and allowing the appeal with appropriate relief.