2019 (6) TMI 185 - AT - Central Excise

CENVAT credit - input services - Air Travel Agent Service - Courier Service - Outdoor Caterer s Service - HELD THAT - The admissibility of cenvat credit on Courier services and Air Travel services has been allowed - Credit allowed. Outdoor Caterer s Service - HELD THAT - For the limited purpose of verification of the fact whether the appellant had collected any charges from their employees in providing Canteen Service, the matter is remanded to the adjudicating authority - matter on remand. Appeal allowed in part and part matter on remand.

Summary

Issues Involved:
Entitlement to Cenvat Credit for input services - "Air Travel Agent Service, Courier Service, and Outdoor Caterer's Service."

Analysis:

The judgment before the Appellate Tribunal CESTAT Ahmedabad dealt with the issue of whether the appellant was entitled to Cenvat Credit for specific input services, namely "Air Travel Agent Service, Courier Service, and Outdoor Caterer's Service." The appellant's counsel argued that a similar issue in the appellant's own case had been decided in their favor previously, and thus, they should be allowed the credit. On the other hand, the Assistant Commissioner representing the Revenue reiterated the findings of the impugned order.

Upon careful consideration of the submissions and perusal of the records, the Tribunal found that the core issue revolved around the eligibility of the appellant for Cenvat Credit on the mentioned services. Referring to a previous order in the appellant's own case, the Tribunal highlighted that Cenvat Credit had been allowed for Air Travel Agent Service and Courier Service based on precedents set by the Hon'ble Gujarat High Court. However, concerning the Outdoor Caterer's Service, the matter was remanded for verifying whether the appellant had collected any charges from their employees for providing catering services.

In alignment with the earlier decision, the Tribunal allowed the Cenvat Credit for Travel Service and Courier Service. Nonetheless, regarding the Cenvat Credit for Outdoor Caterer's Service, the Tribunal remanded the matter for further verification on the aspect of charges collected from employees. Consequently, the appeal was partly allowed, granting credit for two services while remanding the issue of Outdoor Caterer's Service back to the adjudicating authority for additional scrutiny.

The judgment, delivered by Member (Judicial) Mr. Ramesh Nair, was pronounced in open court on 13.03.2019, providing a clear resolution to the entitlement of Cenvat Credit for the specified input services based on legal precedents and factual considerations.