2016 (9) TMI 729 - AT - Central Excise

Refund of unutilized Cenvat Credit - eligible input services - export of taxable services - Technical Inspection and Certification Service - Renting of Immovable Property & Security service - Air Travel Agent - Held that - Technical Inspection services play significant role in the export of services and hence, the credit availed by appellant is very much in order and consequently appellant would be very much eligible for the refund. Rent has been paid for maintenance of sales office which has a direct nexus with the output service provided by the appellants and hence are eligible for the credit. As long as the Travel Agency Service is not received for personal benefit of any employee but meant for travel of office personnel, credit is not deniable. This service is in connection with production, planning, marketing etc. Credit allowed - Decided in favor of assessee.

Summary

Issues:
- Denial of cenvat credit on service tax paid on four input services availed by the appellant involving a specific amount.
- Eligibility of cenvat credit on various services including Technical Inspection and Certification Service, Renting of Immovable Property, Air Travel Agency Service, and Security Agency Services.

Analysis:
1. Technical Inspection and Certification Service:
The appellant argued that these services were essential for ensuring the quality of the final product, falling under the definition of input services. The tribunal agreed, citing a previous decision and granted the appellant the CENVAT Credit for these services.

2. Renting of Immovable Property & Security Service:
The tribunal referred to a previous decision in the appellant's own case where credit for renting of immovable property and security service was allowed. Following this precedent, the tribunal allowed the CENVAT credit for these services, emphasizing the direct nexus between rent payment and the output service provided by the appellant.

3. Air Travel Agent Service:
The appellant justified the use of air travel agency services for official duties, specifically for making travel arrangements for employees to meet clients. The tribunal found this service eligible for refund, as it was directly related to marketing activities and not for personal benefit. Citing a relevant court decision, the tribunal allowed the cenvat credit on air travel agent service.

In conclusion, the tribunal set aside the impugned order and allowed the appeal, emphasizing the eligibility of the appellant for CENVAT Credit on the specified services.