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of <h1>Revenue's Appeal Dismissed on Input Credit Eligibility Under Cenvat Credit Rules</h1> <h3>Commissioner of Central Excise Versus M/s. HCL Technologies</h3> The Revenue's appeal against a Customs, Excise & Service Tax Appellate Tribunal order regarding the admissibility of input credit for various services ... CENVAT Credit - input services - Held that:- Insofar as the Medial Group Insurance is concerned, this is governed by two decisions of the Karnataka High Court in Commr. of C. Ex., Bangalore Vs Stanzen Toyotetsu India (P) Ltd [2011 (4) TMI 201 - KARNATAKA HIGH COURT] and in Commissioner of C. Ex., Bangalore Vs Millipore India Pvt. Ltd. [2011 (4) TMI 1122 - KARNATAKA HIGH COURT]. The service has been held to fulfill the description of the expression 'input service'. As regards Consultancy Services, these were comprised of the payment of invoices of the charges involved in relation to the filing of the tax return in the US. The Commissioner held that the service was governed by the definition of 'input service'. The second related to Legal Consultancy Services which have also been held to fulfill the definition of the expression 'input service'. Both are admissible. The next category is Outdoor Catering Services. The Commissioner furnished a cogent justification for allowing the Cenvat Credit save and except for a partial disallowance in respect of the consumption of alcoholic beverages. In this regard, reference may be made to the decision of the Gujarat High Court in Commr. of C. Ex., Ahmedabad Vs Ferromatik Milacron India Ltd. [2010 (4) TMI 649 - GUJARAT HIGH COURT]. The next category was Subscription for International Taxation. This was an amount paid to a service provider of ₹ 38,759/- for providing information and knowledge pertaining to International Taxation for tax compliance. This fulfills the description of the expression 'input service' in the Rules. As regards 'Advertising and Sponsorship Services', the Tribunal has restored the proceedings to the adjudicating authority for being dealt with in accordance with the relevant judgements on the subject. no substantial question of law would arise - Decided against Revenue. Issues:Interpretation of the definition of 'input service' under Cenvat Credit Rules, 2004 for various services including Medical Group Insurance, Consultancy Services, Outdoor Catering Services, Subscription for International Taxation, Advertisement Service & Sponsorship Service.Analysis:The Revenue appealed against a Customs, Excise & Service Tax Appellate Tribunal order regarding the admissibility of input credit for various services under the Cenvat Credit Rules, 2004. The question of law raised by the Revenue focused on whether certain services, such as Medical Group Insurance, Consultancy Services, Outdoor Catering Services, Subscription for International Taxation, Advertisement Service & Sponsorship Service, qualified as 'input service' as per the Rules. It was noted that the Revenue incorrectly framed the question based on an amended definition that came into effect after the period in dispute, leading to a misconception.Regarding Medical Group Insurance Services, previous decisions by the Karnataka High Court established that such services fell within the definition of 'input service.' Similarly, Consultancy Services, including tax return filing and legal consultancy, were deemed admissible as input services by the Commissioner. Outdoor Catering Services were allowed for Cenvat Credit, with the exception of alcoholic beverages consumption, supported by a decision of the Gujarat High Court.Subscription for International Taxation, involving payment for information on International Taxation compliance, was considered to fulfill the 'input service' criteria. However, the issue of Advertisement and Sponsorship Services was referred back to the adjudicating authority for further consideration in line with relevant judgments. Ultimately, it was concluded that no substantial question of law arose, leading to the dismissal of the appeal without costs.This detailed analysis of the judgment highlights the interpretation and application of the 'input service' definition for various services under the Cenvat Credit Rules, 2004, based on specific legal precedents and considerations, ultimately resulting in the dismissal of the Revenue's appeal.
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