9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (4) TMI 1169 - AT - Service TaxCENVAT credit - input services - cleaning activity service - mandap-keeper service - outdoor catering service - business support service - authorized service station - denial on account of nexus - Held that - as regards cleaning services, the decision in Commissioner of Customs & Central Excise, Hyderabad III v. ITC Limited 2011 (11) TMI 516 - ANDHRA PRADESH HIGH COURT , makes it amply clear that services required for maintenance of essential accommodation is a necessary business activity and not a welfare measure - credit allowed. Mandap-keeper services - Held that - Reliance is placed upon the decision of the Hon ble High Court of Karnataka in Toyota Kirloskar Motor Pvt Ltd v. Commissioner of Central Excise, Bangalore 2011 (3) TMI 1373 - KARNATAKA HIGH COURT based on the principle that all activities relating to business are entitled to availment of credit - credit allowed. Outdoor catering services - Held that - Hon ble High Court of Bombay in Commissioner of Central Excise, Nagpur v. Ultratech Cement Ltd 2010 (10) TMI 13 - BOMBAY HIGH COURT held that credit on such services to be allowed - credit allowed. Business support services - Held that - Reliance has been placed on the decision of the Tribunal in Commissioner of Service Tax, Bangalore v. Yodlee Infotech (P) Ltd 2015 (11) TMI 653 - CESTAT BANGALORE which allows availment of CENVAT credit - credit allowed. Repairs and maintenance service - Held that - the maintenance and repairs of vehicles registered in the name of the appellant should be an automatic entitlement as there could be no contention that the vehicles were not used for the purpose of business activities - Hon ble High Court of Karnataka in Commissioner of Central Excise & Service Tax v. Mangalore Refinery & Petrochemicals Ltd 2016 (1) TMI 481 - KARNATAKA HIGH COURT has allowed the credit on similar issue - credit allowed. Appeal allowed - decided in favor of appellant.
Issues:
Appeal against denial of CENVAT credit on certain input services due to lack of nexus with output services. Analysis: The appeal pertains to the denial of CENVAT credit on specific input services by the appellant, M/S Tata Consultancy Services Ltd, for the period from April 2005 to March 2010. The dispute revolves around the credit availed by ws CMC Ltd, which was later merged with the appellant company. The central issue is the establishment of a nexus between the input services and the output services to claim CENVAT credit. The disputed input services include 'cleaning activity service,' 'mandap-keeper service,' 'outdoor catering service,' 'business support service,' and 'authorized service station.' The appellant argued that these services were utilized in relation to their business activities. For instance, the cleaning activity services were outsourced for maintaining their guest-house used to house personnel on temporary duty. The contention of the appellant was countered by the Authorized Representative, who highlighted the lack of evidence proving the extent to which the guest-houses were used solely for business purposes. It was emphasized that guest-houses primarily serve the purpose of accommodation and are not restricted to conducting business activities only. Regarding the mandap-keeper services, the appellant argued that premises hired for award ceremonies for star performers are integral to business activities. Reference was made to a decision by the Hon'ble High Court of Karnataka to support the claim that all activities related to business are eligible for credit. Similarly, for outdoor catering services, the appellant relied on a judgment by the Hon'ble High Court of Bombay to assert their entitlement to CENVAT credit. The argument was supported by citing relevant legal precedents and decisions. The appellant also defended the claim for business support services, emphasizing the procurement of meal coupons from recognized agencies. Reference was made to a Tribunal decision allowing CENVAT credit for similar services. Lastly, the appellant argued for the entitlement of credit on repairs and maintenance services, citing a decision by the Hon'ble High Court of Karnataka. The appellant contended that maintenance and repairs of vehicles used for business activities should automatically qualify for credit. In conclusion, considering the arguments presented and the legal precedents cited in favor of the appellant, the impugned order denying CENVAT credit was set aside, and the appeal was allowed.
|
