2017 (3) TMI 848 - AT - Central Excise

CENVAT credit - Outdoor Catering Service - Rent-a-cab service - denial on the ground that the said Input Service credit as it was not used in relation to manufacture of their finished goods or used beyond the place of removal and hence not covered under the definition of Input Service as per Rule 2(l) of CCR, 2004 - Held that - Service Tax paid in relation to Outdoor catering Service is covered under the scope of Input Services as defined u/r 2(l) of the CCR 2004 as held in the case of M/s Ultratech Cements Ltd 2010 (10) TMI 13 - BOMBAY HIGH COURT - credit was allowed in the case of Rent-a-cab service in the case of Principal Commissioner Vs. Essar Oil Ltd. 2015 (12) TMI 1062 - GUJARAT HIGH COURT - credit allowed - appeal allowed - decided in favor of appellant.

Summary

Issues:
1. Eligibility of CENVAT Credit on Service Tax paid for "Outdoor Catering Service" and Rent-a-cab service.

Analysis:
The appellant filed appeals against the order passed by the Commissioner (Appeals) Central Excise, Customs and Service Tax-VADODARA-I, regarding the availing of Cenvat Credit on Service Tax for "Outdoor Catering Service" and Rent-a-cab service. The appellant availed credits during specific periods and was issued show cause notices for recovery of wrongly availed credits along with interest and penalty. The Ld Advocate for the appellant argued that the services in question fell under the definition of "Input Service" as per Rule 2(l) of the Cenvat Credit Rules, citing judgments from the Hon'ble Bombay High Court and Hon'ble Gujarat High Court. The appellant also mentioned the reversal of proportionate credit on the amount recovered from employees for outdoor catering service and the absence of any service charge recovery for rent-a-cab service.

The Ld AR for the Revenue supported the findings of the Ld Commissioner (Appeals). The Hon'ble Member (Judicial) analyzed the eligibility of CENVAT Credit on Service Tax paid for "Outdoor Catering Service" and Rent-a-cab service. Referring to previous judgments, including those of M/s Ultratech Cements Ltd, M/s Feromatik Milacrom (I) Ltd, and Principal Commissioner Vs. Essar Oil Ltd., it was concluded that the impugned order was set aside. The appeals were allowed with consequential relief, if any, as per the law. The judgment was dictated and pronounced in the Court by Dr. D.M. Misra, Hon'ble Member (Judicial) at the Appellate Tribunal CESTAT AHMEDABAD.

This detailed analysis of the judgment highlights the arguments presented by both sides, the legal basis for the decision, and the final outcome in favor of the appellant regarding the eligibility of CENVAT Credit on the specified services.