2018 (5) TMI 1783 - AT - Central Excise

CENVAT Credit - input services - Rent-a-cab Service - Tour & Travels Service - Staff Transportation Services - Held that - The issue of eligibility of Cenvat credit of service tax paid on the aforesaid services namely Rent-a-cab Service and Tour & Travels Services are covered by the judgements Maruti Suzuki India Ltd s case 2016 (11) TMI 237 - PUNJAB AND HARYANA HIGH COURT C.J. Gelatine Products Ltd s case 2011 (9) TMI 748 - CESTAT NEW DELHI and Essar Oil Ltd s case 2015 (12) TMI 1062 - GUJARAT HIGH COURT - credit allowed - appeal allowed - decided in favor of appellant.

Summary

Issues involved:
1. Eligibility of Cenvat credit for service tax paid on 'Rent-a-cab Service' and 'Tour & Travels Service' for a specific period.
2. Interpretation of 'Input Service' in relation to transportation services for staff.

Analysis:

Issue 1: Eligibility of Cenvat credit for service tax paid on 'Rent-a-cab Service' and 'Tour & Travels Service'
The appeals were filed against orders-in-appeal passed by the Commissioner (Appeals), Central Excise, Customs, and Service Tax-Vadodara. The main contention was whether the appellants were entitled to avail Cenvat credit for service tax paid on 'Rent-a-cab Service' and 'Tour & Travels Service' for a specific period. The appellant argued that these services were used for transportation of staff and in sales/marketing activities, qualifying as 'Input Service' based on precedents like Maruti Suzuki India Ltd. case and C.J. Gelatine Products Ltd. case. The appellant clarified that no amount was collected from employees for the transport services provided. The Revenue, represented by the Ld. AR, supported the findings of the Ld. Commissioner (Appeals).

Issue 2: Interpretation of 'Input Service' in relation to transportation services for staff
The Hon'ble Member (Judicial) examined the eligibility of Cenvat credit for service tax paid on 'Rent-a-cab Service' and 'Tour & Travels Service' in light of previous judgments such as Maruti Suzuki India Ltd. case, C.J. Gelatine Products Ltd. case, and Essar Oil Ltd. case. The Tribunal referred to these judgments to determine that the services in question qualified as 'Input Service'. Consequently, the impugned order was set aside, and the appeals were allowed with consequential relief as per the law.

This comprehensive analysis of the judgment highlights the issues involved, arguments presented by both parties, legal precedents cited, and the final decision rendered by the Appellate Tribunal CESTAT AHMEDABAD.