2019 (4) TMI 125 - AT - Service Tax

CENVAT Credit - input services - event management service - maintenance charges - bed rental charges - Held that - The event management services were availed by the appellant for conducting the annual day function. The appellant is a BPO service provider and have to undertake such events as per the circular and instructions issued by the higher officers - In the case of Oceans Connect India Pvt. Ltd. 2016 (9) TMI 377 - CESTAT MUMBAI relied by the ld. counsel, the event management service has been held to be eligible for credit - credit allowed. Maintenance charges - Held that - These are incidental to the renting of immovable property - the maintenance charges are eligible for credit - credit allowed. Service tax paid on bed rental charges - Held that - The ld. counsel has submitted that the appellant would be able to furnish documents to substantiate that these are used for providing output services - the issue has to be remanded to the adjudicating authority who shall reconsider the issue after giving the appellant an opportunity to furnish evidence and for personal hearing - matter on remand. Appeal allowed in part and part matter on remand.

Summary

Issues Involved: Disallowance of CENVAT credit on event management service, maintenance charges, service tax on renting bed sets, and lab testing of food in the canteen.

Event Management Services:
The appellant availed event management services for conducting the annual function. The appellant, a BPO service provider, argued that such services were necessary as per circulars from higher officers. Citing a precedent, the appellant contended that event management services are eligible for credit. The tribunal agreed with the appellant, holding that the credit for event management services is valid, allowing for a refund.

Maintenance Charges:
The authorities disallowed credit on maintenance charges, claiming they were incidental to renting immovable property. However, the tribunal disagreed, stating that maintenance charges are indeed eligible for credit as they are related to the upkeep of the premises.

Bed Rental Charges:
Regarding service tax paid on bed rental charges during a flood, the appellant argued that the beds were provided to employees unable to return home due to flooding. The invoices lacked details on bed rentals, but the appellant assured they could provide evidence linking the rentals to output services. The tribunal remanded this issue to the adjudicating authority for further review, allowing the appellant to present evidence and have a personal hearing.

Lab Testing of Food in Canteen:
The appellant did not contest the disallowance of credit for lab testing of food in the canteen, leading to the demand being upheld.

Conclusion:
The tribunal modified the impugned order, setting aside the demand for event management services and maintenance charges, deeming the appellant eligible for credit and a refund. The issue of service tax on bed rental charges was remanded for further review. The credit denial for lab testing of food in the canteen was upheld. The appeals were partly allowed and partly remanded for further consideration by the adjudicating authority.