2019 (3) TMI 300 - AT - Central Excise

CENVAT Credit - input services - Management, Maintenance and Repair of AC - service for Maintenance of Garden within the factory premises - GTA services used for outward transportation of gold sold on FOR basis - Held that - The issue regarding admissibility of credit on maintenance of AC installed in factory premises is covered by the decision in the case of Tema India Limited 2019 (1) TMI 1498 - CESTAT AHMEDABAD . Cenvat credit on Garden Maintenance services - Held that - The issue is covered by the decision of Hon ble Madras High Court in the case of Rane TRW Steering Systems Limited 2015 (4) TMI 704 - MADRAS HIGH COURT the Cenvat credit for maintenance, management and repair of AC and maintenance of Garden are allowed. CENVAT credit for GTA services for outward transportation - Held that - In the case of Sharda Exports 2016 (7) TMI 1357 - CESTAT NEW DELHI , the issue is remanded to the Adjudicating Authority for redetermination the issue. Appeal allowed in part and part matter on remand.

Summary

Issues: Denial of Cenvat credit for management, maintenance, repair of AC and garden services within factory premises; Denial of Cenvat credit for service tax paid on GTA services for outward transportation of gold sold on FOR basis.

Analysis:
1. Denial of Cenvat credit for management, maintenance, repair of AC and garden services within factory premises:
The appellant, M/s. Hindalco Industries Limited, filed an appeal against the denial of Cenvat credit for services related to the management, maintenance, and repair of AC and garden services within the factory premises. The appellant's counsel relied on the decision in the case of Tema India Limited and the decision of the Hon'ble Madras High Court in the case of Rane TRW Steering Systems Limited to support their argument for the admissibility of the credit. The Tribunal, per the order by Mr. Raju, found that the issue of admissibility of credit on AC maintenance was covered by the decision in the Tema India Limited case. Similarly, the issue of Cenvat credit for garden maintenance services was deemed admissible based on the decision of the Hon'ble Madras High Court in the Rane TRW Steering Systems Limited case. Therefore, the Tribunal allowed the Cenvat credit for maintenance, management, and repair of AC as well as for garden maintenance services.

2. Denial of Cenvat credit for service tax paid on GTA services for outward transportation of gold sold on FOR basis:
The denial of Cenvat credit for service tax paid on GTA services used for outward transportation of gold sold on FOR basis was also contested in the appeal. The appellant's counsel referred to the decision in the case of Sharda Exports to support their argument for the admissibility of the credit. The Tribunal noted that the issue of Cenvat credit for GTA services for outward transportation was not conclusively covered by previous decisions. As a result, the Tribunal remanded this specific issue to the Adjudicating Authority for further determination. Consequently, the appeal was partly allowed concerning the maintenance, management, and repair of AC and garden services, while the issue of Cenvat credit for GTA services for outward transportation was remanded for redetermination by the Adjudicating Authority.

In conclusion, the Tribunal's judgment in the appeal by M/s. Hindalco Industries Limited addressed the denial of Cenvat credit for various services, allowing credits for AC and garden maintenance services based on previous decisions, while remanding the issue of GTA services for further consideration by the Adjudicating Authority.