2017 (7) TMI 17 - AT - Central Excise

CENVAT credit - input services - servicing of Air-Conditioners - Civil Works and Road Works at Bellary Road office - rental charges for space for coolers at malls - cooler maintenance and repair services - Held that - the disputed services on which cenvat credit has been denied fall in the definition of input service as provided in Rule 2(l) of Cenvat Credit Rules, 2004 - the issue is squarely covered in favour of the appellant by the decision in the case of M/s. Carrier Airconditioning & Refrigeration Ltd. Versus CCE, Gurgaon 2016 (3) TMI 124 - CESTAT NEW DELHI and Commissioner of S.T., Mumbai-II Versus MMS Maritime (India) Pvt. Ltd. 2016 (5) TMI 682 - CESTAT MUMBAI - credit allowed - appeal allowed - decided in favor of appellant.

Summary

Issues: Denial of cenvat credit on various services, including servicing of Air-Conditioners, Civil Works, Road Works, rental charges for coolers at malls, cooler maintenance, and repair.

Analysis:
1. The appellant, a manufacturer of soft drinks, availed cenvat credit on various services. The original authority allowed credit for certain services but disallowed it for others, leading to the present appeal against the impugned order dated 30.01.2015.
2. The appellant contended that the impugned order narrowly interpreted the definition of 'input service' under Rule 2(l) of Cenvat Credit Rules, 2004, contrary to judicial precedents. They argued that services like Air-Conditioner maintenance at the office have a clear nexus with the manufacturing business, citing relevant case law to support their claim.
3. The appellant further argued that denial of credit for civil works and road works at the office was unjustified, emphasizing that the office's location does not affect eligibility for cenvat credit under the Rules. They referenced a Bombay High Court decision to support their interpretation of input services.
4. Additionally, the appellant challenged the denial of credit for rental charges for coolers at a mall, asserting that such expenses contribute to sales promotion and are integral to their business activities. They cited their own case and relevant decisions to strengthen their argument.
5. The Tribunal, after hearing both parties and considering the submissions and case law cited by the appellant, found in favor of the appellant. The Tribunal noted that the disputed services fell within the definition of input service as per the Cenvat Credit Rules and allowed the appeal, setting aside the impugned order with consequential relief.

This detailed analysis highlights the key arguments, legal interpretations, and the Tribunal's decision regarding the denial of cenvat credit on various services as outlined in the judgment.