Input service credit on travel agent services for business-related travel to job workers was held admissible under CENVAT rules.

Input service credit was admissible on travel agent services used to send technicians and accountants to job workers, because services used for the business of manufacturing the final product fall within the scope of input service credit under the CENVAT Credit Rules, 2004. The denial of credit was therefore unsustainable, as the issue was treated as covered by Bombay HC precedent supporting business-related services as eligible input services.

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Issues: Whether input service credit was admissible on travel agent services used for travelling of technicians and accountants to job workers under rule 2(l) of the CENVAT Credit Rules, 2004.

Analysis: The denial of credit was tested against the settled principle that any service used for the business of manufacturing the final product qualifies for input service credit. Reliance was placed on the Bombay High Court decision holding that such business-related services fall within the ambit of input service credit and that the issue stood covered by precedent.

Conclusion: The credit was admissible and the disallowance could not be sustained.

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