2018 (5) TMI 105 - AT - Central Excise

CENVAT credit - air travel agent service - Held that - admissibility of cenvat credit of the service tax paid on air travel agent service used by the employees for sales/marketing attending legal issues etc. is covered by the judgment of the Division Bench Keihin Fie Pvt Ltd Versus Commissioner of Central Excise, Pune 2017 (10) TMI 122 - CESTAT MUMBAI , where it was held that travelling of the executive and staff is inevitable to run the business therefore service is related to travelling i.e. Air & Rail Travel Booking Services is necessary service for running the business hence in our view credit is admissible - credit allowed - appeal allowed - decided in favor of appellant.

Summary

Issues: Admissibility of Cenvat credit on service tax paid for air travel agent services used by employees for various purposes.

Analysis:
- The appeals were filed against orders passed by the Commissioner of Central Excise (Appeals) and were taken up together due to a common issue.
- The appellant availed credit of service tax paid on air travel agent services for specific periods.
- The appellant argued that the services were used for staff travel related to order procurement, marketing, and legal matters, making them eligible for credit, citing a Division Bench judgment.
- The Revenue's representative supported the Commissioner's findings.
- The Member (Judicial) referred to the Division Bench judgment mentioned by the appellant, which supported the admissibility of the credit for services used by employees for sales, marketing, and legal issues.
- Consequently, the impugned orders were set aside, and the appeals were allowed with any consequential relief as per the law.