2021 (3) TMI 627 - AT - Central Excise

CENVAT Credit - input services - Air Civil Enclave Services - Authorized Service Station Service - Mandap Keeper Service - Outdoor Caterer Service - Rent-a-Cab Operator s Service - Tour Operator Service - Travel Agent Service - Renting of Immovable Service - Convention Service - Company Secretary Service - Steamer Agent Service - Telecommunication Service - credit denied mainly on the ground that the appellant could not establish the nexus between the said services and appellant s manufacturing/business activity - HELD THAT - As per the use declared by the appellant, all the services were used either in relation to the manufacturing activity of the appellant or in relation to the overall business activity. It is also not disputed that the invoices were issued in the name of the appellant therefore, there is no question of receipt and use of service by any other person except by the appellant. Rent-a-cab service - Tour Operator service - Travel Agent service - HELD THAT - The said services pertain to hiring of vehicles which are used by its employees for their movement within the Refinery premises or for travelling outside in connection with its business - Travel agent service has been utilized for booking of travel tickets for its employees for their official travel. The services are, therefore, used in or in relation to manufacturing / business activities of the company - reliance can be placed in the case of M/S ADANI PORT SPECIAL ECONOMIC ZONE LTD AND M/S ADANI PETRONET PORT PVT. LTD. VERSUS COMMISSIONER OF SERVICE TAX, AHMEDABAD 2015 (12) TMI 1060 - CESTAT AHMEDABAD - credit allowed. Renting of Immovable Property - HELD THAT - These services pertain to service tax paid by the output service provider towards the office premises provided to the company on rent. These office premises are being used for carrying out its business activity viz. procurement, marketing, auditing, accounting etc. - reliance can be placed in the case of M/S. HINDUSTAN COCA-COLA BEVERAGES PVT. LD. VERSUS COMMISSIONER OF CENTRAL EXCISE, CHENNAI-IV 2019 (5) TMI 251 - CESTAT CHENNAI - credit allowed. Telecommunication Service - HELD THAT - The mobile phone service is used by employees for carrying out business activities - reliance can be placed in the case of M/S ADANI PORT SPECIAL ECONOMIC ZONE LTD AND M/S ADANI PETRONET PORT PVT. LTD. VERSUS COMMISSIONER OF SERVICE TAX, AHMEDABAD 2015 (12) TMI 1060 - CESTAT AHMEDABAD - credit allowed. Convention Service - HELD THAT - The said services were utilized in relation to training of its employees. The input service provider has provided the stay and other facilities for the employees of the company who attended such trainings - reliance can be placed in the case of M/S HINDUSTAN PETROLEUM CORPORATION LTD. VERSUS CCE, C ST, VISAKHAPATNAM 2016 (9) TMI 680 - CESTAT HYDERABAD - credit allowed. Airport Civil Enclave - HELD THAT - The said service is received in connection with its private aircraft which is used for travel of employees, consulting engineers, business clients etc. connected with the manufacturing activity and business of the company - reliance can be placed in the case of M/S RELIANCE INDUSTRIES LTD. VERSUS COMMISSIONER OF CENTRAL EXCISE SERVICE TAX, LTU, MUMBAI 2016 (8) TMI 123 - CESTAT MUMBAI - credit allowed. Authorized service station - HELD THAT - The said service is used for servicing of company owned vehicles which are used by the employees for their official travel for carrying out their official responsibilities which are in relation to manufacture / business - reliance can be placed in the case of M/S RELIANCE INDUSTRIES LTD. VERSUS COMMISSIONER OF CENTRAL EXCISE SERVICE TAX, LTU, MUMBAI 2016 (8) TMI 123 - CESTAT MUMBAI - credit allowed. Company secretary - HELD THAT - The said service is utilized for fulfilling various statutory obligations of the company such as Secretarial Audit under Clause 47 (c) of the SEBI s listing agreement and certification etc. which are in relation to manufacture / business - reliance can be placed in the case of M/S ADANI PORT SPECIAL ECONOMIC ZONE LTD AND M/S ADANI PETRONET PORT PVT. LTD. VERSUS COMMISSIONER OF SERVICE TAX, AHMEDABAD 2015 (12) TMI 1060 - CESTAT AHMEDABAD - credit allowed. Outdoor catering - HELD THAT - The said service pertains to operation of industrial canteens which are located in its Refinery. In terms of the provisions of the Factory Act, it is mandatory for certain factories to provide an industrial canteen within the factory premises - reliance can be placed in the case of M/S ADANI PORT SPECIAL ECONOMIC ZONE LTD AND M/S ADANI PETRONET PORT PVT. LTD. VERSUS COMMISSIONER OF SERVICE TAX, AHMEDABAD 2015 (12) TMI 1060 - CESTAT AHMEDABAD - credit allowed. Mandap Keeper - HELD THAT - The said service is rendered by the hotel used by the company for the purpose of conducting interviews for recruitment of employees and for business conferences held with its business associates - reliance can be placed in the case of M/S ADANI PORT SPECIAL ECONOMIC ZONE LTD AND M/S ADANI PETRONET PORT PVT. LTD. VERSUS COMMISSIONER OF SERVICE TAX, AHMEDABAD 2015 (12) TMI 1060 - CESTAT AHMEDABAD - credit allowed. Steamer agent - HELD THAT - The said service has been utilized by it in relation to procurement of inputs / inward transportation of inputs or capital goods which is specifically covered by the definition of input service - reliance can be placed in the case of M/S ADANI PORT SPECIAL ECONOMIC ZONE LTD AND M/S ADANI PETRONET PORT PVT. LTD. VERSUS COMMISSIONER OF SERVICE TAX, AHMEDABAD 2015 (12) TMI 1060 - CESTAT AHMEDABAD - credit allowed. The appellant is entitle for the Cenvat Credit - However, in respect of same services some of the invoices were not produced by the appellant which needs to be verified. Therefore, in such cases the matter needs to be remitted back to the Adjudicating Authority - Appeal allowed by way of remand.

Summary

Issues Involved:
Whether the appellant is entitled to Cenvat Credit for various services used in relation to manufacturing or business activities.

Analysis:

Issue I: Air Civil Enclave Services
The appellant claimed Cenvat Credit for services related to hiring vehicles for employee movement within refinery premises and business travel. The appellant argued that these services were directly linked to manufacturing/business activities. Several judgments were cited in support of allowing Cenvat Credit for such services.

Issue II: Authorized Service Station Service
The appellant sought Cenvat Credit for servicing company-owned vehicles used for official travel related to manufacturing/business activities. Again, the appellant emphasized the nexus between the services and business operations, supported by relevant case laws.

Issue III: Mandap Keeper Service
Cenvat Credit was claimed for services provided by a hotel for conducting interviews and business conferences. The appellant argued that these services were utilized for recruitment and business purposes, directly connected to manufacturing/business activities.

Issue IV: Outdoor Caterer Service
The appellant claimed Cenvat Credit for operating industrial canteens within the refinery premises, mandatory under the Factory Act. The argument was based on the necessity of these services for factory operations, supported by relevant case laws.

Issue V: Rent-a-Cab Operator's Service
Cenvat Credit was sought for hiring vehicles used by employees for official travel within the refinery or business-related travel. The appellant contended that these services were essential for business operations and manufacturing activities.

Issue VI: Tour Operator Service
The appellant claimed Cenvat Credit for booking travel tickets for official travel of employees. The argument was that these services were directly related to business activities and manufacturing operations.

Issue VII: Travel Agent Service
Cenvat Credit was claimed for travel ticket bookings for official travel. The appellant argued that these services were integral to business operations and manufacturing activities.

Issue VIII: Renting of Immovable Service
The appellant sought Cenvat Credit for office premises rented for business activities such as procurement, marketing, auditing, and accounting. The claim was supported by the necessity of these premises for carrying out business operations.

Issue IX: Convention Service
Cenvat Credit was claimed for services utilized in training employees, including stay and facilities provided by the service provider. The appellant argued that these services were crucial for employee development and directly related to business activities.

Issue X: Company Secretary Service
The appellant claimed Cenvat Credit for services utilized for fulfilling statutory obligations related to Secretarial Audit and certification. The argument was that these services were essential for compliance and business operations.

Issue XI: Steamer Agent Service
Cenvat Credit was sought for services related to procurement of inputs or transportation of goods, covered under the definition of input service. The appellant emphasized the importance of these services for manufacturing operations.

Conclusion:
The appellate tribunal found that the appellant had established the nexus between the services claimed for Cenvat Credit and manufacturing/business activities. While some invoices were not produced, the tribunal remanded those cases for verification. The impugned order was set aside, and the appeal was allowed by remanding the matter to the Adjudicating Authority for further review.