2018 (6) TMI 1076 - AT - Central Excise

CENVAT Credit - input services - Rent a Cab Service for the period April, 2006, to December, 2010 - Held that - The period involved is prior to 01.04.2011, which is before amendment of Rule 2(l) of the Cenvat Credit Rules, 2004; that prior to this date, the definition of input service did not restrict availment of credit on the said input service - reliance placed in the case of M/S. WIPRO LTD. VERSUS COMMISSIONER OF CENTRAL EXCISE, PONDICHERRY 2018 (4) TMI 967 - CESTAT CHENNAI , where it was held that Rent a Cab services were availed for picking up and dropping of the employees of the company - catering services were used for providing Canteen facilities for the employees. These services were not excluded prior to 01.04.2011 - credit allowed - appeal dismissed - decided against Revenue.

Summary

Issues:
Denial of Cenvat Credit on Rent a Cab Service for the period April 2006 to December 2010.

Analysis:
The judgment revolves around the denial of Cenvat Credit availed on Rent a Cab Service for the mentioned period. The adjudicating authority had issued 11 Show Cause Notices proposing recovery of the input service credit taken, leading to appeals by the Department. The issue focused on whether Rent a Cab Services, utilized for carrying staff to the factory site, were closely related to the manufacture of the final product. The respondents argued that the definition of input service prior to 01.04.2011 did not restrict the availment of credit on such services. The Ld. Advocate cited relevant case laws to support this argument.

The Tribunal considered the arguments presented by both sides and referred to the case of Wipro Ltd. vs. C.C.E., Pondicherry, where it was established that activities relating to the business of manufacture fell within the definition of input service before 01.04.2011. The Tribunal emphasized that services like Rent a Cab, catering, mandap keeper, and courier services were not excluded before the specified date. The judgment highlighted that the period involved in the case of courier services was prior to 01.04.2008, and the input services availed for dispatching goods were deemed eligible for credit.

Based on the precedents and legal analysis, the Tribunal concluded that denial of credit on the stated services was unjustified. The judgment reiterated the decision laid in the case of Wipro Ltd. and found no new reasons to deviate from the established ratio. Consequently, the appeals of the Department were dismissed, affirming the allowance of Cenvat Credit on Rent a Cab Service for the period in question.