2018 (3) TMI 2030 - AT - Service Tax

Tribunal Rules on Cenvat Credit: Excludes Catering, Rent-a-Cab Services; Remands for Further Review on Recoveries.

The Tribunal concluded that the appellant was entitled to avail cenvat credit on services used in manufacturing excisable goods, except for catering and ... CENVAT Credit - input services or not - Air Travel Agent Service - Catering Service - CHA service (Export) - Courier Service - Event management service - Group term insurance service - Hotel service - Rent a cab/Car service - Repair and maintenance service (car) - Tour and Travel Service - Construction service - HELD THAT:- The issue has been settled for the impugned period by the Hon’ble High Court Bombay in the case of CCE, NAGPUR VERSUS ULTRATECH CEMENT LTD., [2010 (10) TMI 13 - BOMBAY HIGH COURT] wherein it has been held that any service availed by the assessee in the course of their business of manufacturing is entitled for cenvat credit - Admittedly, all these services have been availed by the appellant in the course of their business of manufacturing of excisable goods, therefore, the appellant is entitled to avail cenvat credit on the services in question except catering service & rent a cab service for which the matter required for examination at the end of the adjudicating authority to ascertain the fact that whether any amount towards the service has been recovered from the employees or not. If the same is recovered, in that circumstance, cenvat credit attributable to the said amount is not admissible as cenvat credit. The matter is remanded back to the adjudicating authority to ascertain the fact whether the appellant has recovered any amount to towards catering service & rent a cab service from the employees or not - appeal disposed off by way of remand. Issues: Denial of cenvat credit on various services under Rule 2(l) of the cenvat credit rules, 2004 during 2005-06 to 2007-08.Analysis:The appellant appealed against the impugned order that denied cenvat credit on multiple services, alleging they were not input services under Rule 2(l) of the cenvat credit rules, 2004. The services in question included Air Travel Agent Service, Catering Service, CHA service (Export), Courier Service, Event management service, Group term insurance service, Hotel service, Rent a cab/Car service, Repair and maintenance service (car), Tour and Travel Service, and Construction service.The Tribunal heard both parties and reviewed the submissions. The Tribunal noted that the issue had been settled for the relevant period by the Hon’ble High Court Bombay in the case of Ultratech Cement Pvt. Ltd. The High Court held that any service availed by the assessee in the course of their business of manufacturing is eligible for cenvat credit. As all the services in question were utilized by the appellant in the manufacturing of excisable goods, the appellant was deemed entitled to avail cenvat credit on these services, except for catering service and rent a cab service.However, the Tribunal highlighted that the matter of catering service and rent a cab service required further examination by the adjudicating authority. The adjudicating authority needed to determine whether any amount towards these services had been recovered from the employees. If such recovery had taken place, the cenvat credit attributable to that amount would not be admissible. Consequently, the Tribunal remanded the matter back to the adjudicating authority for this specific assessment.In conclusion, the appeal was disposed of with the terms outlined, providing clarity on the eligibility of cenvat credit for the various services in question, except for catering service and rent a cab service, pending further examination by the adjudicating authority to ascertain potential recovery of amounts from employees towards these services.