2015 (10) TMI 1852 - AT - Service Tax

Availability of CENVAT Credit - Courier Services and Tour Operator Services - Held that - Issues are not more res integra and stands settled by various decisions of the higher Courts. In the case of Commissioner of Central Excise, Nagur vs. Ultratech Cement Ltd. 2010 (10) TMI 13 - BOMBAY HIGH COURT , it was observed that the definition of input service is very wide and any services received in connection with the business activities, either before or after the manufacturing of goods, have to be held as cenvatable input services. Reference can also be made to the Tribunal s decision in the case of Commissioner of Central Excise vs. Wiptech Peripherals Pvt. Ltd. 2008 (6) TMI 13 - CESTAT AHMEDABAD where tax paid on courier services was allowed. - Impugned order is set aside - Decided in favour of assessee.

Summary

Issues:
Availability of CENVAT credit for service tax paid on 'Courier Services' and 'Tour Operator Services' as input services.

Analysis:
The judgment by the Appellate Tribunal CESTAT Bangalore, delivered by Member (J), Archana Wadhwa, pertained to the availability of CENVAT credit for service tax paid on 'Courier Services' and 'Tour Operator Services' as input services. The tribunal proceeded to decide the appeals after rejecting the request for adjournment, as the issue was considered settled by various decisions of the Tribunal.

Upon reviewing the impugned order and hearing the learned DR, it was found that the dispute revolved around whether 'Courier Services' and 'Tour Operator Services' could be considered as input services for availing CENVAT credit. The lower authorities had denied the credit, asserting that these services did not qualify as input services.

The appellants argued that 'Courier Services' were essential for correspondence with customers or vendors, facilitating transactions such as sending purchase orders, payment cheques, and other necessary communications. Similarly, 'Tour Operator Services' were utilized for the movement of employees to engage in various business-related activities like banking operations and Central Excise office work.

The tribunal noted that the issue had been extensively addressed in previous decisions of higher courts. Citing the case of Commissioner of Central Excise, Nagur vs. Ultratech Cement Ltd., it was emphasized that the definition of input service was broad, encompassing any services related to business activities, whether before or after manufacturing goods. Additionally, reference was made to the tribunal's decision in Commissioner of Central Excise vs. Wiptech Peripherals Pvt. Ltd., where tax paid on courier services was deemed allowable.

In alignment with the precedents and legal interpretations provided by the aforementioned cases, the tribunal set aside the impugned order and granted both appeals, thereby allowing the appellants to avail consequential relief in this matter. The operative portion of the order was pronounced in open court, affirming the decision to permit CENVAT credit for 'Courier Services' and 'Tour Operator Services' as valid input services.