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2019 (7) TMI 1296 - AT - Central ExciseCENVAT Credit - input services - Insurance Agency Service - Telephone Service - Business Auxiliary Service - Travel Agency Service - Cost Accountant Service - Courier Service - Construction Service - Repairs and Maintenance Service - Air Travel Agency Service - period from October 2010 to March 2011. CENVAT Credit - input services - Courier/Transportation (GTA) Service - HELD THAT - There is no agreement/contract on record and hence, in all fairness, both the assessee as well as the Revenue should have the benefit of the same and therefore, the issue requires re-adjudication - matter on remand. Pest Control service - HELD THAT - This Bench in the case of M/S. HINDUSTAN COCA COLA BEVERAGES PVT. LTD. VERSUS COMMISSIONER OF GST CENTRAL EXCISE CHENNAI OUTER 2019 (2) TMI 404 - CESTAT CHENNAI covers the issue on hand wherein it was held that the pest control services availed by the appellant are input services and therefore the same are eligible for credit. Employee Medical Maintenance Service - HELD THAT - The appellant enables its employees to undergo medical examination twice in a year keeping in mind the health of its employees, which is also in tune with the Factories Act, 1948 which makes it mandatory for an employer to take care of the health, safety and welfare of each of its employees - Credit allowed. Hotel Service - HELD THAT - Mumbai bench of the Tribunal in the case of WARBURG PINCUS INDIA PVT. LTD. VERSUS COMMISSIONER OF SERVICE TAX-I, MUMBAI 2018 (4) TMI 482 - CESTAT MUMBAI has held that the services are input service for providing the output service - credit allowed. Appeal allowed in part and part matter on remand.
Issues Involved:
1. Denial of CENVAT Credit on various services. 2. Eligibility of CENVAT Credit on Courier/Transportation (GTA) Service. 3. Eligibility of CENVAT Credit on Pest Control Service. 4. Eligibility of CENVAT Credit on Employee Medical Maintenance Service. 5. Eligibility of CENVAT Credit on Hotel Service. Issue-wise Detailed Analysis: 1. Denial of CENVAT Credit on Various Services: The appellant availed input service credit on multiple services such as Insurance Agency Service, Telephone Service, Business Auxiliary Service, Travel Agency Service, etc., amounting to ?70,69,012/- for the period from October 2010 to March 2011. The Revenue disallowed ?13,09,265/- related to Business Auxiliary Services, arguing these services were not used directly or indirectly in the manufacture of final products or related activities as per Rule 2(l)(ii) of the CENVAT Credit Rules, 2004. The First Appellate Authority allowed credit for certain services but disallowed others like Courier/Transportation Service, Pest Control Service, Employee Medical Maintenance Service, and Hotel Service. 2. Eligibility of CENVAT Credit on Courier/Transportation (GTA) Service: The First Appellate Authority disallowed credit beyond the factory gate. The Tribunal noted the absence of an agreement/contract on record and remanded the issue to the Adjudicating Authority for re-adjudication in light of the C.B.I.C. Circular No. 1065/4/2018-CX dated 08.06.2018 and the Supreme Court decisions in M/s. Ultra Tech Cement Ltd. and M/s. Roofit Industries Ltd. 3. Eligibility of CENVAT Credit on Pest Control Service: The Tribunal referenced the case of M/s. Hindustan Coca-Cola Beverages Pvt. Ltd. Vs. Commissioner of G.S.T. & Central Excise, where pest control services for premises storing inputs like sugar were deemed essential and eligible for credit. Following this precedent, the Tribunal set aside the denial of credit for Pest Control Service. 4. Eligibility of CENVAT Credit on Employee Medical Maintenance Service: The Tribunal considered the appellant’s argument that medical examinations for employees are mandated by the Factories Act, 1948. Citing decisions like M/s. HCL Technologies Ltd. Vs. Commissioner of Cus., C.Ex. & S.T., Noida and others, the Tribunal concluded that Employee Medical Maintenance Service is an input service and set aside the denial of credit. 5. Eligibility of CENVAT Credit on Hotel Service: The Tribunal referred to the decisions of the Mumbai Bench in M/s. Warburg Pincus India Pvt. Ltd. and the Delhi Bench in M/s. Adobe Systems India Pvt. Ltd., which supported the appellant's claim. Consequently, the denial of credit for Hotel Service was set aside. Conclusion: - The matter regarding Courier/Transportation (GTA) Service is remanded for re-adjudication. - The denial of CENVAT Credit for Pest Control Service, Employee Medical Maintenance Service, and Hotel Service is set aside. - The appeal is partly allowed and partly remanded. (Order pronounced in the open court on 25.07.2019)
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