2016 (10) TMI 1245 - AT - Service Tax

CENVAT Credit - input services - cleaning services - telephone services - case of Revenue is that the services were rendered at the branch offices and that branch offices are beyond the place of removal i.e. factory premises - Held that - The contention raised by the Department cannot be relied upon that the input services have to be availed within the factory itself. The definition of input services does not state any such criteria for availing credit on input service - credit allowed - appeal dismissed - decided against Revenue.

Summary

The Appellate Tribunal CESTAT HYDERABAD ruled that the respondent is eligible to avail credit of service tax paid on cleaning and telephone services, even if rendered at branch offices. The Department's argument that credit is not admissible for services rendered outside the factory premises was rejected. The appeal was dismissed as the definition of input services does not require services to be availed within the factory itself.