Appellant granted Cenvat credit for service tax on Mandap Keeper & rent-a-cab services

The Tribunal ruled in favor of the appellant, a motor vehicle manufacturer, allowing Cenvat credit for service tax paid on Mandap Keeper service and rent-a-cab service. The Tribunal found precedents supporting the eligibility for credit on both services, used for various activities such as meetings, vehicle launches, employee transportation, and official visits. Consequently, the Tribunal set aside the Commissioner's order and allowed the appeals, determining that the denial of Cenvat credit was not sustainable.

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Issues:
Eligibility for Cenvat credit of service tax paid on Mandap Keeper service and rent-a-cab service.

Analysis:

The appellant, a manufacturer of motor vehicles, sought Cenvat credit for service tax paid on Mandap Keeper service and rent-a-cab service utilized for various activities. The Commissioner denied the credit, leading to appeals filed by the appellant against the order. The Counsel for the appellant argued citing precedents where similar issues were decided in favor of the appellants. The learned DR defended the Commissioner's order. The Tribunal considered the submissions and records.

Regarding the Mandap Keeper service, the Tribunal noted that it was used for organizing meetings, vehicle launches, and promotional activities. Citing previous judgments, the Tribunal found in favor of the appellant, setting aside the denial of Cenvat credit for this service. Similarly, concerning the rent-a-cab service used for employee transportation, business meetings, and official visits, the Tribunal found precedents supporting the appellant's eligibility for Cenvat credit. The Tribunal referred to various judgments where similar issues were decided in favor of appellants, concluding that the impugned order was not sustainable.

In light of the above analysis, the Tribunal set aside the Commissioner's order, ruling in favor of the appellant and allowing the appeals. The judgment was dictated and pronounced in open court by the Tribunal.

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