2013 (8) TMI 601 - AT - Service Tax

Tribunal grants input service credit for 'Mandap Keeper Service' at Annual Day function

ENDURANCE TECHNOLOGIES PVT LTD Versus COMMISSIONER OF CENTRAL EXCISE, AURANGABAD

The Tribunal allowed the appellant's appeal, granting input service credit on the 'Mandap Keeper Service' for their Annual Day function. The Tribunal ... Input Service Credit – appellant was disallowed by the department to take input service credit – department’s reasoning was that the service does not have nexus with the manufacturing activity of the appellant - Held that:- Appellant is entitled to input service credit on Mandap Keeper Service - the annual day function of the appellant company is an integral part of the business activity - it is also found that the appellant is the manufacturer of excisable goods - relying on the decision of CCE Nagpur vs Ultratech Cement Ltd (2010 (10) TMI 13 - BOMBAY HIGH COURT) and Kirloskar Motor Pvt. Ltd. vs. CCE LTU, Bangalore (2011 (3) TMI 1373 - KARNATAKA HIGH COURT) - the order was set aside - appeal allowed in the favour of the appellant. Issues: Denial of input service credit on 'Mandap Keeper Service' for Annual Day functionAnalysis:The appellant contested the denial of input service credit on 'Mandap Keeper Service' for their Annual Day function, arguing that the service was integral to their business activity as a manufacturer of excisable goods. The Tribunal considered the case laws cited by both parties, including the judgments in the cases of Toyota Kirloskar Motor Pvt. Ltd. and Ultratech Cement Ltd. The appellant relied on these precedents to support their claim for input service credit, emphasizing the importance of the Annual Day function in engaging with employees and their families. The Tribunal noted that the service in question had a direct connection to the business operations of the appellant, distinguishing it from the cases referenced by the Revenue. Consequently, the Tribunal set aside the impugned order and allowed the appeal, granting the appellant input service credit on the 'Mandap Keeper Service' for the Annual Day function.Key Points:- The appellant availed the services of the Mandap Keeper for their Annual Day function, attended by employees and their families.- The appellant argued that the Annual Day function was an integral part of their business activity as a manufacturer of excisable goods.- Citing relevant case laws, the appellant demonstrated that they were entitled to input service credit on the 'Mandap Keeper Service.'- The Tribunal found that the service had a nexus with the manufacturing activity of the appellant, contrary to the arguments presented by the Revenue.- Relying on the precedents of Ultratech Cement Ltd. and Toyota Kirloskar Motor Pvt. Ltd., the Tribunal ruled in favor of the appellant, setting aside the impugned order and allowing the appeal with consequential relief, if any.