2019 (4) TMI 1083 - AT - Service Tax

CENVAT Credit - input services - floor insulation work interior design work - hotel charges - HELD THAT - It is the contention of the Appellant that on the basis of the sample invoices produced, the learned Commissioner has wrongly concluded that the floor insulation work relates to civil structure and hotel stay charges are not incurred in relation to professional work rendered by the employees of the Appellant Company. He submits that if all invoices are examined, then it can be ascertained that these services are used only for the purpose of interior design and renovation work and hotel charges are in relation to discharging professional services on behalf of the Company. The matter is remanded to the Adjudicating authority, who would examine all the input service invoices taking into consideration the case-laws on the subject and arrive at the conclusion whether the CENVAT Credit on the two input services are eligible or otherwise - appeal allowed by way of remand.

Summary

Issues Involved:
Entitlement to CENVAT Credit on floor insulation work, interior design work, and hotel charges for the relevant period.

Entitlement to CENVAT Credit on Floor Insulation Work and Interior Design Work:
The case involved an appeal regarding the entitlement to CENVAT Credit on floor insulation work, interior design work, and hotel charges. The Appellants, engaged in providing taxable services, had availed CENVAT Credit on these input services but were issued a show cause notice alleging wrong availment of credit. The Adjudicating authority confirmed a demand, which was partially upheld by the learned Commissioner (Appeals). The Appellant contended that the works undertaken were for repair and maintenance of premises, satisfying the definition of 'input service.' The Appellant argued that all works were for repair and maintenance purposes, contrary to the Commissioner's findings based on sample invoices. The Appellant cited relevant case laws to support their claim. The Tribunal found merit in the Appellant's contentions and remanded the matter to the Adjudicating authority to examine all input service invoices, considering case laws and determining the eligibility of CENVAT Credit on the mentioned services.

Entitlement to CENVAT Credit on Hotel Charges:
Regarding the hotel charges incurred in relation to the visit of employees for professional works, the Appellant argued that the service tax paid on these charges was admissible as Credit. The Appellant contended that the hotel charges were related to discharging professional services on behalf of the Company, contrary to the Commissioner's conclusion that they were for personal use. The Appellant highlighted that the relevant invoices were not examined adequately by the Commissioner. The Tribunal acknowledged the Appellant's arguments and directed the Adjudicating authority to re-examine the issue of CENVAT Credit on hotel charges, along with the issue of limitation raised by the Appellant. The Tribunal kept all issues open and allowed the appeal by way of remand for further examination and consideration.