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TMI Blog2019 (11) TMI 47X X X X Extracts X X X X X X X X Extracts X X X X ..... amounts under different heads. They have not paid it under works contract services. The classification of any goods or services at the input invoice stage cannot be altered while deciding eligibility of credit to the recipient. Therefore, the classification cannot be altered in this case as well - In this case, the works contract services pertain to, as was seen by me from the sample invoices, either maintenance of office equipment or cleaning of carpets, etc., which were used at the head office - the appellant is entitled to Cenvat credit on these services as well. Appeal allowed - decided in favor of appellant. - Appeal No. E/30254/2019 - A/30673/2019 - Dated:- 19-7-2019 - HON'BLE MR. P. VENKATA SUBBA RAO, MEMBER (TECHNICAL) Shri Ch. Sumanth, Chartered Accountant for the Appellant. Shri V.R. Pavan Kumar, Authorized Representative for the Respondent. ORDER PER: P.V. SUBBA RAO. 1. This appeal is filed by the appellant against Order-in-Appeal No. TTD-EXCUS- 000-APP-129-18-19 dated 31.12.2018. 2. The brief facts of the case are that the appellant her ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... peal. 5. Learned Chartered Accountant (CA) appearing for the appellant submits that in the first place with respect to some period of the demand i.e., October, 2013 to September, 2014 an SCN has also been issued to their head office who were registered as input service distributor. This SCN has been dropped by their adjudicating authority. Therefore, the very basis on which SCN is raised is doubtful. Notwithstanding this assertion, he submits that the three disputed services are air travel services, repair and maintenance service and annual maintenance charges. 6. As far as air travel services are concerned, he submits that these pertain to services availed by them for official air travel of their employees, auditors, etc., in connection with their official work. Therefore, they are not excluded by Rule 2(l) of CCR, 2004. He draws attention of the bench to this rule which is as follows. (l) input service means any service, - i. used by a provider of output service for providing an output service, or ii. used by a manufacturer, whether directly or indirectly, in or in relation to the ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n an employee or an advocate or an auditor travels for official work there is no personal use or consumption by such employee, auditor or advocate. Therefore, such travel is not excluded from the definition of input service. He demonstrates this argument with few invoices which indicate that the travel was on account of official work. Further, he argues that neither in the SCN nor in the impugned order, the department has established that travel was for personal work. Therefore, they are entitled to Cenvat credit. 8. As far as the repair and maintenance services and AMC services are concerned, he would assert that undisputedly in both these cases, the contracts are for both supply of materials and rendition of services. Therefore, these can be considered as Works Contract services. However, the tax has been paid as indicated under repair and maintenance services and AMC services. The classification of service at the service provider s end cannot be altered at the recipient s end. Notwithstanding this argument, he would assert that all works contracts are not excluded from the definition of input service under Rule 2(l) of CCR, 2004. He would assert that as per cla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l services are concerned, the appellant has not demonstrated, as recorded by the first appellate authority in Para 6 of the impugned order, that they did not produce any evidence to establish that air travel was meant for official work. Further, he argues that exclusion part of the input services definition specifically covers works contract services and it is undisputed that nature of the services in this case with respect to disputed invoices included both provision of material and rendition of services. Therefore, it falls under the definition of works contract. The impugned order may therefore by upheld and the appeal may be rejected. 10. I have considered the arguments on both sides and perused the records. The SCN seeks to deny Cenvat credit on (a) air travel services (b) repair and maintenance services and (c) annual maintenance charges. 11. As far as air travel services are concerned, it is sought to be denied on the ground that the travel was for personal benefit of employees. The SCN did not adduce any evidence to show that the travel was only on personal account and the benefit of the travel went to individual employees. On the other h ..... X X X X Extracts X X X X X X X X Extracts X X X X
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