2018 (12) TMI 867 - AT - Service Tax

CENVAT Credit - input services - advertisement of tender - work quarters to AMC work - repair and maintenance of staff quarters at port - guest house of port colony and Mumbai guest house - Held that - The service of repair and maintenance of staff quarters, guest house at port, the issue is covered by various decision of this Tribunal where the credit on said services are allowed. Advertisement service - Held that - This being a Government Organization inviting tender is must for allotting any work of service provider, therefore, service is essential and has direct nexus with output service - advertisement of tender is an input service and eligible for Cenvat Credit - credit allowed. Appeal allowed - decided in favor of appellant.

Summary

Issues: Admissibility of Cenvat Credit for input services - Advertisement of tender, repair and maintenance of staff quarters at port, guest house of port colony, and Mumbai guest house.

Admissibility of Cenvat Credit for Repair and Maintenance of Staff Quarters: The appellant argued that the credit for repair and maintenance of staff quarters at the port is admissible based on a previous tribunal order dated 15.11.2017. The tribunal found that the service was essential for providing output service, and as the service tax was paid and the service was used for providing output service, the Cenvat Credit could not be denied. The tribunal allowed the credit for this input service.

Admissibility of Cenvat Credit for Advertisement of Tender: The appellant contended that the advertisement of tender service is necessary for inviting tenders for various work required at the port, making it an essential service for providing the output service. The tribunal agreed, stating that as a government organization, inviting tenders is crucial for allotting work to service providers, establishing a direct nexus with the output service. Therefore, the advertisement of tender was deemed an input service eligible for Cenvat Credit. The tribunal allowed the credit for this input service as well.

Conclusion: After considering the submissions and analyzing the judgments cited by both parties, the tribunal found that the repair and maintenance service for staff quarters at the port and the advertisement of tender service were essential for providing output services. Citing a previous tribunal order and the direct nexus between the services and output services, the tribunal allowed the Cenvat Credit for both input services. Consequently, the impugned order was set aside, and the appeal was allowed.