2018 (5) TMI 181 - AT - Central Excise

CENVAT credit - Air Travel Service in relation to tours undertaken by the Directors for sales promotion activities - Held that - the issue is covered by the decisions of the Tribunal in Reliance Industries Ltd s case 2016 (8) TMI 123 - CESTAT MUMBAI , where it was held that the credit allowed on such service - appeal allowed - decided in favor of appellant.

Summary

Issues:
- Appeal against order-in-appeal regarding entitlement to Cenvat credit on service tax paid for 'Air Travel Service' in relation to sales promotion tours.

Analysis:
The appeal before the Appellate Tribunal CESTAT AHMEDABAD involved the question of whether the appellants were entitled to avail Cenvat credit of the service tax paid on 'Air Travel Service' in relation to tours undertaken by the Directors for sales promotion activities. The Tribunal considered the submissions made by both sides. The appellant's advocate referred to a previous Tribunal order and a case involving Reliance Industries Ltd. to support their claim for credit. The Revenue's representative reiterated the findings of the Commissioner (Appeals).

Upon analysis, the Tribunal found that the issue of eligibility for credit of service tax paid on Air Travel Service, utilized for marketing goods by employees, was already covered by previous decisions of the Tribunal, specifically citing the case of Reliance Industries Ltd. Consequently, the Tribunal set aside the impugned order and allowed the appeal with any consequential relief as per the law. The judgment was dictated and pronounced in open court by Dr. D. M. Misra, Member (Judicial) of the Tribunal.