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of <h1>Appeal success highlights importance of Chartered Accountant's certificate in claiming Cenvat credit for air travel expenses.</h1> <h3>TUFROPES PVT. LTD. Versus COMMISSIONER OF CENTRAL EXCISE, VAPI</h3> TUFROPES PVT. LTD. Versus COMMISSIONER OF CENTRAL EXCISE, VAPI - 2012 (27) S.T.R. 269 (Tri. - Ahmd.) Issues:Cenvat credit denial for air travel expenses.Analysis:The judgment pertains to the denial of Cenvat credit amounting to Rs. 27,125 availed by the appellants for air travels from January 2006 to March 2009, with an additional penalty imposed equal to the credit amount. The issue revolves around the nexus of the air travel service with the manufacturing process and the business purpose. The appellants presented a Chartered Accountant's certificate certifying that the air travel expenditure was booked as revenue expenditure related to final products, with the cost of services included in the assessable value. The Tribunal found the certificate sufficient, considering the complexities involved in proving the specific purpose of each travel, especially in the context of business-related travels reimbursed by the industry. The judgment also referenced a High Court decision indicating that the restriction of place of removal applies to Goods Transport Agency services, not air travel services. Moreover, a previous Tribunal decision confirmed the eligibility of Cenvat credit for service tax paid on air travel services, further supporting the appellants' case. Consequently, the appeal was allowed, emphasizing the adequacy of the Chartered Accountant's certificate in establishing the link between air travel expenses and business operations.This judgment highlights the importance of providing appropriate documentation to support Cenvat credit claims, especially in cases involving services like air travel. The Tribunal's consideration of the complexities in proving the business purpose of each travel underscores the practical challenges faced by businesses in such situations. By referencing relevant legal precedents, including a High Court decision and a previous Tribunal ruling, the judgment establishes a legal basis for allowing the appeal and recognizing the validity of the Chartered Accountant's certificate as sufficient evidence. Overall, the decision provides clarity on the eligibility of Cenvat credit for air travel expenses and emphasizes the significance of proper documentation and professional certification in substantiating such claims before the authorities.
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