Customs, Excise and Services Tax Appellate Tribunal (CESTAT): Ramesh Nair (Judicial Member) allowed an appeal which was filed against the impugned order wherein Commissioner (Appeals) had disallowed the credit in respect of certain services.
The issue involved in the case was that whether the appellant was entitled to Cenvat Credit in respect of following Services namely:
- 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.
The credit was disallowed on the ground that the appellant could not establish the nexus between the said services and appellant’s manufacturing/business activity. The Counsel for the appellant, Ms. Dimple Gohil submitted that in respect of all these services, the invoices were issued in the name of the appellant. All these services were used either in relation to manufacturing activity of the appellant or related to business activity. Therefore, it is clearly covered under the definition of Input Service as provided under Rule 2(l) of the Cenvat Credit Rules, 2004 at the relevant period i.e. June- 2008 to February-2009.
The Tribunal after perusal of records observed 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 was also not disputed that the invoices were issued in the name of the appellant therefore, there was no question of receipt and use of service by any other person except by the appellant.
The Tribunal followed the various judgments mentioned by the counsel of the appellant and allowed the appeal holding that the appellant was entitled to the Cenvat Credit.[Nayara Energy Ltd. v. C.C.E. & ST, 2021 SCC OnLine CESTAT 105, decided on 15-03-2021]
Suchita Shukla, Editorial Assistant has reported this brief.