Cenvat credit on business-related travel, tour, and club services held admissible as input services

Cenvat credit on Air Travel Agents Service, Tour Operator Service, and Membership of Club or Association Service was examined under the Cenvat Credit Rules, 2004 for business nexus in the context of manufacture. Applying existing line of decisions on similar services, the services were treated as input services connected with business operations. The denial of credit was therefore set aside and the credit was held admissible in favour of the assessee.

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Issues: Whether cenvat credit was admissible on Air Travel Agents Service, Tour Operator Service, and Membership of Club or Association Service as input services.

Analysis: The dispute concerned denial of cenvat credit on certain input services on the basis that they were not eligible under the Cenvat Credit Rules, 2004. The services in question were examined in the context of the business of manufacture and the existing line of decisions relied upon for similar services. On that basis, the claimed credit on these services was treated as having sufficient business nexus and as falling within the category of admissible input services.

Conclusion: The credit was held to be admissible, and the denial of cenvat credit on these input services was set aside in favour of the assessee.

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