2014 (2) TMI 495 - AT - Central Excise

Cenvat Credit on Input Services - Benefit under the definition of Rule 2(l) of CENVAT Credit Rules, 2004 - Held that - services have been availed by the appellant in the course of business of manufacturing therefore, they are entitled for input service credit. Appellant is entitled to avail the input service credit on the above mentioned services as the same has been availed by the appellant as a manufacturer in the course of their business activity - Decided in favour of assessee.

Summary

Issues involved:
Whether the appellant is entitled to avail input service credit on various services availed during the manufacturing activity.

Analysis:
The appellant, a manufacturer of excisable goods, availed CENVAT credit of service tax paid on multiple services, including air travel services, gardening services, rent of immovable property services, and others. The Revenue contended that these services did not qualify for the benefit under the definition of Rule 2(l) of CENVAT Credit Rules, 2004, hence the appellant was not entitled to input service credit. However, the appellant argued that these services were utilized in the course of their manufacturing business and relied on a decision by the Hon'ble High Court of Bombay in the case of Ultra Tech Cement Ltd to support their claim.

The Tribunal, after considering the appellant's contention and the nature of services availed during the manufacturing process, held that the appellant was indeed entitled to avail input service credit. By relying on the decision of Ultra Tech Cement Ltd., the Tribunal concluded that since the services were utilized by the appellant as a manufacturer in the course of their business activity, they were eligible for the input service credit. Consequently, the impugned order was set aside, and the appeal was allowed with consequential relief. Additionally, the stay application was disposed of accordingly.

In summary, the judgment allowed the appellant to avail input service credit on the various services utilized during their manufacturing activities, emphasizing that the services were integral to their business operations and thus qualified for the credit under the relevant rules and precedents.