2021 (8) TMI 900 - AT - Service Tax

CENVAT Credit - input services - Outdoor Catering Services - Rent-a-Cab Services - Rental Charges paid towards their office situated in Mumbai - HELD THAT - The services on which credit has been denied are Outdoor Catering Service and Rent-a-Cab Service. These services were held to be eligible for credit in the appellant s own case for a different period in COMMISSIONER OF SERVICE TAX, CHENNAI VERSUS M/S. CHENNAI CONTAINER TERMINAL PVT. LTD. 2018 (4) TMI 1642 - CESTAT CHENNAI - credit allowed. Credit on service tax paid on rental charges - HELD THAT - On perusal of the invoice submitted along with appeal paper book, it is seen that it is raised in the name of the appellant-Company. Though, the department alleges that the premises is used by the Manager/Director of the company, they have not produced evidence to establish this allegation. The period is prior to 01.04.2011 and the definition of input services during such period included the words activities relating to business . For these reasons, the disallowance of the credit on these input services is unjustified. The disallowance of credit for the Outdoor Catering Service, Rent-a-Cab Service and Rental Charges for their Mumbai office cannot sustain - Appeal allowed - decided in favor of appellant.

Summary

Issues: Disallowance of credit on service tax paid for Outdoor Catering Services, Rent-a-Cab Services, and Rental Charges for office in Mumbai.

In this judgment by the Appellate Tribunal CESTAT CHENNAI, the appellant filed an appeal against the disallowance of credit availed on service tax paid for various services, including Outdoor Catering Services, Rent-a-Cab Services, and Rental Charges for their office in Mumbai. The appellant's counsel argued that in a previous case for a different period, the Tribunal had allowed credit for Outdoor Catering Service and Rent-a-Cab Service. Regarding the Rental Charges for their Mumbai office, the original authority had allowed the credit, but the Commissioner (Appeals) disallowed it. The appellant contended that since the premises were used for administrative functions, the credit should be allowed. The invoices were in the name of the company, indicating the premises were used for company-related activities. The department argued against allowing credit for the rental charges paid for the Mumbai office. After hearing both sides, the Tribunal noted that credit had been denied for Outdoor Catering Service and Rent-a-Cab Service, which were previously allowed in a different case. The issue of eligibility for credit on service tax paid for rental charges was also considered. The Tribunal found that the disallowance of credit on these input services was unjustified as the premises were used for business activities, and the invoices were in the name of the appellant-Company. Therefore, the disallowance of credit for all three services was set aside, and the appeal was allowed with consequential reliefs, if any.