2018 (12) TMI 726 - AT - Central Excise

CENVAT Credit - various input services - Renting of immovable property - Work contract service - Air travel agent - Mandap keeper - Club or association service - Rent-a-cab - Authorized service station - Photography - Tour operator - Courier service - Held that - Almost all the input services have been held as input services in the judgments cited by the appellant - all the services are indeed input services and credit is admissible. Rent-a-cab service - Held that - On perusal of invoice, it is found that it is not rent-a-cab whereas it is service of supply of tangible goods which was used for organizing medical camp which is in connection to promotion of their product, therefore, it is an input service. Appeal allowed - decided in favor of appellant.

Summary

Issues:
Whether the appellant is entitled to cenvat credit for various input services.

Analysis:
The appellant sought cenvat credit for input services including renting of immovable property, work contract service, air travel agent, mandap keeper, club or association service, rent-a-cab, authorized service station, photography, tour operator, and courier service. The appellant argued that all these services were used in relation to the overall manufacturing and sale of goods, falling under the definition of input services. The appellant relied on several judgments where credit for similar services was allowed by the Tribunal and High Courts. The appellant specifically highlighted that the rent-a-cab service was actually for the supply of tangible goods used in organizing a camp related to product promotion, making it eligible for credit.

The Revenue, represented by Ms. Nitina Nagori, reiterated the findings of the impugned order, opposing the appellant's claim for cenvat credit on the input services in question.

After considering the submissions and perusing the records, the Member (Judicial) noted that the input services in question had been consistently held as eligible for cenvat credit in previous judgments cited by the appellant. The Member found that the rent-a-cab service, upon review of the invoice, was actually for the supply of tangible goods used in organizing a medical camp related to product promotion, thus meeting the criteria for an input service. Relying on the precedents and judgments cited, the Member concluded that there was no need to reexamine the admissibility of cenvat credit on such input services. Consequently, the impugned order was set aside, and the appeal was allowed in favor of the appellant.

The judgment was pronounced in open court on 10.12.2018 by Shri Ramesh Nair, Member (Judicial) of the Appellate Tribunal CESTAT Ahmedabad.