2017 (3) TMI 1681 - AT - Central Excise

Tribunal Overturns Commissioner's Decision on CENVAT Credit for Marine Policy & Travel Services

The Tribunal allowed the appeal, setting aside the Commissioner's decision to demand recovery of CENVAT credit on service tax paid for Marine Policy, ... CENVAT Credit - input services - Marine Policy for export of goods - Travel Agents Services/Rent-a-Cab services - Held that:- The issues relating to eligibility of CENVAT Credit of service tax paid on Premium paid on Marine Policy for export of goods, Travel Agents Services/Rent-a-Cab services are squarely covered by the decisions of the Hon'ble Gujarat High Court in the case of Principal Commissioner vs. Essar Oil Limited [2015 (12) TMI 1062 - GUJARAT HIGH COURT], and Commissioner vs. Dynamic Industries Limited [2014 (8) TMI 713 - GUJARAT HIGH COURT], where it was held that the credit on both these services allowed - appeal allowed - decided in favor of appellant. Issues involved:1. Eligibility of CENVAT credit on service tax paid for Marine Policy, Travel Agents Services, and Rent-a-Cab services.2. Applicability of decisions by the Hon'ble Gujarat High Court on the eligibility of CENVAT credit.Analysis:1. The appeal was filed against the Order-in-Original dated 20/08/2014 by the Commissioner (Appeals) of Central Excise, Customs, and Service Tax-Vadodara-II, where demand notice for recovery of CENVAT credit on various services was issued to the appellant. The appellant availed CENVAT credit on service tax paid for Marine Policy, Travel Agents Services, and Rent-a-Cab services for the period October 2007 to December 2008, considering them as 'input services.' The demand was confirmed and penalty imposed. The ld. Commissioner (Appeals) upheld the decision, leading to the present appeal.2. The appellant argued that the period in question falls before 01.04.2008 and is covered by the decision of the Hon'ble Gujarat High Court in the case of Principal Commissioner vs. Essar Oil Limited and Circular No. 943/4/2011-CX dated 29.04.2011, which clarifies the availability of credit on such services pre-01.04.2008. The appellant also clarified that they did not recover charges from employees for Rent-a-Cab services and did not recover premiums paid on Marine Policy or Travel Agents Services from customers. The Revenue's representative reiterated the Commissioner's findings.3. The Tribunal found that the issues regarding the eligibility of CENVAT credit on service tax paid for Premium on Marine Policy, Travel Agents Services, and Rent-a-Cab services were directly addressed by the Hon'ble Gujarat High Court in the cases of Principal Commissioner vs. Essar Oil Limited and Commissioner vs. Dynamic Industries Limited. Citing these decisions, the Tribunal set aside the impugned order, allowing the appeal with any consequential relief as per the law.This detailed analysis outlines the legal context, arguments presented by both parties, and the Tribunal's decision based on relevant precedents from the Hon'ble Gujarat High Court.