Appellate Tribunal allows CENVAT credit for Courier and Tour Operator Services

The Appellate Tribunal CESTAT Bangalore, in a judgment delivered by Member (J), Archana Wadhwa, allowed the availability of CENVAT credit for service tax paid on 'Courier Services' and 'Tour Operator Services' as input services. The tribunal rejected the denial of credit by lower authorities, emphasizing that these services qualified as essential for business activities based on precedents such as Commissioner of Central Excise vs. Ultratech Cement Ltd. and Commissioner of Central Excise vs. Wiptech Peripherals Pvt. Ltd. Consequently, the tribunal granted the appeals, permitting the appellants to avail CENVAT credit for the mentioned services.

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Issues:
Availability of CENVAT credit for service tax paid on 'Courier Services' and 'Tour Operator Services' as input services.

Analysis:
The judgment by the Appellate Tribunal CESTAT Bangalore, delivered by Member (J), Archana Wadhwa, pertained to the availability of CENVAT credit for service tax paid on 'Courier Services' and 'Tour Operator Services' as input services. The tribunal proceeded to decide the appeals after rejecting the request for adjournment, as the issue was considered settled by various decisions of the Tribunal.

Upon reviewing the impugned order and hearing the learned DR, it was found that the dispute revolved around whether 'Courier Services' and 'Tour Operator Services' could be considered as input services for availing CENVAT credit. The lower authorities had denied the credit, asserting that these services did not qualify as input services.

The appellants argued that 'Courier Services' were essential for correspondence with customers or vendors, facilitating transactions such as sending purchase orders, payment cheques, and other necessary communications. Similarly, 'Tour Operator Services' were utilized for the movement of employees to engage in various business-related activities like banking operations and Central Excise office work.

The tribunal noted that the issue had been extensively addressed in previous decisions of higher courts. Citing the case of Commissioner of Central Excise, Nagur vs. Ultratech Cement Ltd., it was emphasized that the definition of input service was broad, encompassing any services related to business activities, whether before or after manufacturing goods. Additionally, reference was made to the tribunal's decision in Commissioner of Central Excise vs. Wiptech Peripherals Pvt. Ltd., where tax paid on courier services was deemed allowable.

In alignment with the precedents and legal interpretations provided by the aforementioned cases, the tribunal set aside the impugned order and granted both appeals, thereby allowing the appellants to avail consequential relief in this matter. The operative portion of the order was pronounced in open court, affirming the decision to permit CENVAT credit for 'Courier Services' and 'Tour Operator Services' as valid input services.

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