CESTAT allows Cenvat credit on varied services but deems a portion inadmissible. Recovery and reduced penalty imposed.

The Appellate Tribunal CESTAT AHMEDABAD, in a case concerning entitlement to Cenvat credit of service tax paid on various services, allowed the credit for input services such as Renting of Immovable Property, Insurance Premiums for factory buildings, Courier Service, Advertisement Service, Accounting Service, Share Registry Service, and Air Travel Agent's Service. However, a portion of the credit amounting to Rs. 2,38,560/- was deemed inadmissible, leading to recovery with interest and a reduced penalty of Rs. 25,000/-, resulting in a partial allowance of the appeal.

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Issues: Determination of entitlement to Cenvat credit of service tax paid on various services.

Analysis:
1. Issue: Entitlement to Cenvat credit of service tax paid on various services.
- The appellant contested the admissibility of Cenvat credit amounting to Rs. 20,63,504/- for services like Renting of Immovable Property, Chartered Accountants Service, Repairs and Maintenance Service, Share Registry Service, Accounting Service, Glass Manufacturer Membership Service, Courier Service, Air Travel Agent’s Service, and Insurance Policy.
- The appellant accepted that a portion of the credit, Rs. 2,38,560/- related to general insurance services post 01.04.2011, was not admissible.
- The appellant argued for the admissibility of the remaining Cenvat credit based on precedents from various Tribunal cases supporting their claim.

2. Judgment:
- The Tribunal examined the nature of the input services in question and their admissibility under Rule 2(l) of CCR, 2004.
- Cenvat credit for services like Renting of Immovable Property, Insurance Premiums for factory buildings, Courier Service, Advertisement Service, Accounting Service, Share Registry Service, and Air Travel Agent’s Service were deemed admissible as input services based on previous Tribunal judgments cited by the appellant.
- The Cenvat credit of Rs. 2,38,560/- was acknowledged as inadmissible, leading to a recovery with interest, while the penalty was reduced to Rs. 25,000/-.
- Consequently, the impugned order was modified to allow credit for various input services except for the mentioned inadmissible amount, resulting in a partial allowance of the appeal.

This judgment by the Appellate Tribunal CESTAT AHMEDABAD, delivered by Dr. D. M. Misra, Hon'ble Member (Judicial), clarified the entitlement to Cenvat credit of service tax paid on specific services, emphasizing the admissibility of certain input services based on established legal precedents while addressing the inadmissible credit amount in a balanced manner.

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