2018 (2) TMI 1227 - AT - Central Excise

CENVAT credit - input services - Brokerage for procuring inputs - bank charges - pest control - job work charges - cab operator - maintenance and repair services in relation to cars - commission paid to domestic and foreign selling agents - legal services - printing service - commission to foreign and domestic agents - Held that - credit on service tax paid on the input services namely, Broakerage for procuring inputs, bank charges, pest control, job charges, legal services, printing service is admissible to credit - reliance placed in the case of Meghmani Dyes & Intermediates Ltd. vs CCE Ahmedabad 2014 (1) TMI 558 - CESTAT AHMEDABAD . Service tax paid on rent-a-cab, repair and maintenance in relation to vehicles for the period after 01.04.2011 is not admissible. Regarding, the service tax paid on sales commission service, the order of the Tribunal in the case of Essar Steel India Pvt. Ltd. 2016 (4) TMI 232 - CESTAT AHMEDABAD has been challenged by the Revenue and the same is on board of the Hon ble Gujarat High Court. Therefore, this issue is remanded to the adjudicating authority to decide the same on the basis of outcome of the aforesaid pending appeal before the Hon ble Gujarat High Court. Decided partly in favor of assessee, partly against assessee and part matter on remand.

Summary

Issues involved:
1. Eligibility to avail CENVAT credit of service tax paid on various input services for the relevant periods.
2. Eligibility to avail CENVAT credit of service tax on legal services, printing services, and commission to foreign and domestic agents for the relevant periods.

Analysis:

Issue 1:
The first issue pertains to the eligibility of the appellants to avail CENVAT credit of service tax paid on various input services during the relevant periods. The Ld. Advocate argued citing judgments such as Meghmani Dyes & Intermediates Ltd. and others, that most of the services are considered 'input services' except for services like Cab Operator and Maintenance & Repair in relation to cars. The Ld. Advocate requested the issue related to credit on sales commission to be remanded to the adjudicating authority due to a pending appeal before the Hon'ble Gujarat High Court. The Ld. AR for the Revenue supported the findings of the Ld. Commissioner (Appeals).

Issue 2:
The second issue involves the eligibility to avail CENVAT credit of service tax on legal services, printing services, and commission to foreign and domestic agents for the relevant periods. The tribunal found that credit on service tax paid on most input services is admissible based on previous judgments. However, service tax paid on rent-a-cab, repair, and maintenance in relation to vehicles post 01.04.2011 is not admissible. Regarding the service tax paid on sales commission service, the tribunal remanded the issue to the adjudicating authority pending the outcome of the appeal before the Hon'ble Gujarat High Court.

In conclusion, the tribunal disposed of the appeals by allowing CENVAT credit on most input services but disallowing it on specific services post 01.04.2011 and remanding the issue related to sales commission service pending the outcome of a pending appeal before the Hon'ble Gujarat High Court.