2022 (6) TMI 818 - AT - Central Excise

CENVAT Credit - input services - Air travels service - Authorized Service station - Clearing Forwarding Agent Services - Custom House Agent Services - Commercial or Industrial Constructions Services - GTA outward Services - General Insurance Services - Vehicle Repair Services etc. - nexus of subject services with the manufacturing activity of the manufacturer - HELD THAT - Almost all the services have been considered time and again by this tribunal for the manufacturing units and the credit was allowed. Air Travel Agent Service - Used in relation to the travel of the company personal for the marketing, meetings for business purposes - HELD THAT - Reliance can be placed in the case of M/S XILINX INDIA TECHNOLOGY SERVICES PVT. LTD. VERSUS THE COMMISSIONER. C.C. E ST, HYDERABAD-IV 2016 (7) TMI 598 - CESTAT HYDERABAD - credit allowed. Authorised Service Station - Used in connection with the repair and maintenance of the vehicles belonging to the manufacturing unit - HELD THAT - Reliance can be placed in the case of M/S. JSW STEEL LTD VERSUS COMMISSIONER OF CENTRAL EXCISE, CUSTOMS AND SERVICE TAX-BELGAUM (VICE-VERSA) 2021 (12) TMI 381 - CESTAT BANGALORE - credit allowed. Clearing Forwarding Agent Service - For the imports of inputs or export of manufactured goods from the place of removal i.e. port - HELD THAT - Reliance can be placed in the case of COMMISSIONER VERSUS DYNAMIC INDUSTRIES LTD. 2014 (8) TMI 713 - GUJARAT HIGH COURT - credit allowed. Custom House Agent - For import and export related Customs clearance work - HELD THAT - Reliance can be placed in the case of INGERSOLL-RAND INTERNATIONAL (INDIA) LTD. VERSUS COMMR. OF S.T., BANGALORE 2015 (12) TMI 484 - CESTAT BANGALORE - credit allowed. Construction Service - Factory / office building Construction - HELD THAT - Reliance can be placed in the case of M/S. SUNDRAM FASTENERS LIMITED VERSUS CCE, PUDUCHERRY 2017 (2) TMI 16 - CESTAT CHENNAI - credit allowed. GTA Service - ST paid on RCM basis for outward is a valid input service - HELD THAT - Reliance can be placed in the case of COMMISSIONER OF CENTRAL EXCISE, BELGAUM VERSUS M/S. VASAVADATTA CEMENTS LTD. 2018 (3) TMI 993 - SUPREME COURT - credit allowed. Insurance Service - Insurance of Plant/machinery/stocks against fire, in the course of production activities - aw materials, mediclaim for staff and employee etc. also included - HELD THAT - Reliance can be placed in the case of CANTABIL RETAIL INDIA LTD, RAJESH ROHILLA, ANIL BANSAL, DIRECTOR VERSUS CCE, DELHI-I AND (VICE-VERSA) 2017 (9) TMI 205 - CESTAT NEW DELHI - credit allowed. Vehicle Repair Service - Related to repairs to business owned vehicles, used in the course and furtherance of manufacturing business - HELD THAT - Reliance can be placed in the case of COMMR. OF C. EX., MYSORE VERSUS CHAMUNDI TEXTILES (SILK MILLS) LTD. 2010 (4) TMI 450 - CESTAT, BANGALORE - credit allowed. It is clear that each and every service involved in the present case are admissible input service - credit allowed - appeal allowed - decided in favor of appellant.

Summary

Issues:
Whether the appellant is entitled to cenvat credit for various services used in relation to manufacturing activities.

Analysis:
The issue at hand pertains to the entitlement of the appellant for cenvat credit on multiple services utilized in connection with manufacturing activities. The show cause notice initially proposed denying cenvat credit due to improper documentation and lack of nexus with the manufacturing process. The adjudicating authority disallowed the credit on the grounds of lack of usage in or in relation to manufacturing activities. The Commissioner (Appeals) upheld this decision, leading to the appellant's appeal before the tribunal.

Upon review, the tribunal considered whether the services in question had a nexus with the manufacturing activities of the appellant. The appellant's counsel argued that previous tribunal judgments supported the admissibility of cenvat credit for similar services. The tribunal examined past judgments related to services like Air Travel Agent, Authorized Service Station, Clearing & Forwarding Agent Service, Custom House Agent, Construction Service, GTA Service, Insurance Service, and Vehicle Repair Service. The tribunal noted that these services had been consistently allowed for cenvat credit in previous cases.

The tribunal referenced specific cases for each service category, highlighting the usage and legal authority supporting the admissibility of cenvat credit. Based on the precedents and legal positions established in previous judgments, the tribunal concluded that all services in the present case were eligible for cenvat credit. Consequently, the tribunal set aside the impugned order and allowed the appeal in favor of the appellant.

In conclusion, the tribunal's decision centered on establishing the nexus between the services provided and their utilization in the manufacturing activities of the appellant. By relying on past tribunal judgments and legal authorities, the tribunal determined that the appellant was indeed entitled to cenvat credit for the various services in question.