2019 (3) TMI 241 - AT - Central Excise

CENVAT Credit - input services - Air & Rail Travel Booking Services - Held that - When it is not under dispute that the Air Travel Agent Service was used for travelling of official staff for the Companies purpose within and outside the country the services were used in or in or in relation to overall manufacturing and business of the appellant company., credit cannot be denied - This issue has been considered in the decision of Keihin Fie Pvt. Ltd. 2017 (10) TMI 122 - CESTAT MUMBAI wherein the credit of Air Travel Agent Booking Service were allowed - credit allowed - appeal allowed - decided in favor of appellant.

Summary

Issues:
Admissibility of Cenvat Credit in respect of Air & Rail Travel Booking Services.

Analysis:
The judgment delivered by the Appellate Tribunal CESTAT AHMEDABAD, focused on the issue of the admissibility of Cenvat Credit concerning Air & Rail Travel Booking Services. The appellant argued that the services were utilized for official travel of office staff, both domestically and internationally. The denial of credit by the lower authority was based on the premise that the services were not used in or in relation to the manufacture of the final product. However, the appellant cited a precedent where a similar credit was allowed. The Tribunal, after considering the submissions and records, noted that the services were indeed used for official staff travel for the company's purposes within and outside the country, thus contributing to the overall manufacturing and business activities of the appellant. Drawing from the precedent cited, the Tribunal allowed the Cenvat Credit on Air Travel Agent Service, ultimately setting aside the impugned order and ruling in favor of the appellant.

In conclusion, the judgment resolved the issue by recognizing the essential role of Air Travel Agent Services in facilitating official staff travel for business purposes, both domestically and internationally. The decision aligned with the precedent set in a previous case, emphasizing the integral connection between such services and the overall manufacturing and business operations of the appellant company. By allowing the Cenvat Credit on Air Travel Agent Service, the Tribunal upheld the importance of considering the broader context in which such services are utilized, ultimately ensuring a fair and reasonable application of tax regulations in this specific case.