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2018 (3) TMI 995 - AT - Service TaxCENVAT credit - input services - Club Services - Tours and Travel Services - Sodexho Passes - Rent-a-Cab Service - Credit Card Services - Held that - all these services on which cenvat credit has been allowed by the Commissioner (Appeals) fall in the definition of input service as held by various Benches of the Tribunal - reliance placed in the case of Pam Pharmaceuticals & Allied Machinery Co. P. Ltd. Versus Commissioner of Central Excise, Mumbai V 2016 (3) TMI 229 - CESTAT MUMBAI , COMMISSIONER OF SERVICE TAX, BANGALORE Versus YODLEE INFOTECH (P) LTD. 2015 (11) TMI 653 - CESTAT BANGALORE credit rightly allowed - appeal dismissed - decided against Revenue.
Issues:
1. Eligibility of cenvat credit on various input services. 2. Alleged irregularity in availing input service credit. 3. Demand of service tax under Renting of Immovable Property Services. 4. Short payment of service tax. 5. Imposition of interest and penalties under Sections 77 and 78 of the Finance Act, 1994. Analysis: 1. The Revenue appealed against the Commissioner (Appeals) order allowing cenvat credit on Club Services, Tours and Travel Services, Sodexho passes, Rent-a-Cab Service, and Credit Card Services. The Department contended that these services did not meet the criteria of 'input services' as defined under Rule 2(l) of Cenvat Credit Rules, 2004. Additionally, there was an issue of alleged irregularity in availing input service credit against invoices issued to a specific entity. The Department also demanded service tax under Renting of Immovable Property Services and highlighted a short payment of service tax for a specific period. Interest and penalties were imposed on the appellant under Sections 77 and 78 of the Finance Act, 1994. 2. The Revenue argued that the impugned order allowing cenvat credit on the mentioned input services was not sustainable as these services were not directly related to the output service rendered by the assessee. The Revenue contended that the services did not fall within the definition of 'input service.' However, the respondent's counsel asserted that all the services were used for the purpose of rendering output service. Various arguments were presented, such as Club Services being used for sales promotion, Travel Services for business purposes, Rent-a-Cab for employee and client transportation, Credit Card Services for travel bookings and advertising, and Sodexho passes for employee food benefits. The respondent relied on multiple decisions by different Tribunals to support their stance. 3. After hearing both parties and reviewing the material and decisions cited, the Judicial Member found that the services in question fell within the definition of 'input service' as established by previous Tribunal decisions. Citing the consistency of these decisions, the Judicial Member upheld the Commissioner (Appeals) order, concluding that the cenvat credit had been rightfully allowed. The appeal by the Revenue was dismissed, affirming the impugned order. This comprehensive analysis outlines the key issues raised in the legal judgment, the arguments presented by both parties, and the ultimate decision rendered by the Judicial Member of the Appellate Tribunal CESTAT Bangalore.
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