2008 (12) TMI 117 - AT - Service Tax

Tribunal allows appeal, overturns Commissioner's denial of Cenvat credit for Service tax on Insurance, Catering, and Mobile Services.

The appeal was allowed by the Tribunal, setting aside the Commissioner's order denying Cenvat credit for Service tax paid on Insurance, Catering Services, ... Cenvat credit - service tax credit on mobile services - service tax credit on catering services - service tax credit on insurance of plant and machinery - precedential reliance to allow input service creditCenvat credit - service tax credit on mobile services - Whether Cenvat credit of service tax paid on mobile services was rightly denied. - HELD THAT: - The Tribunal noted earlier decisions permitting credit in respect of mobile services and applied those precedents. Relying on the authority of the High Court of Gujarat and Tribunal decisions cited, the denial of credit in respect of mobile services was held to be incorrect. The Tribunal therefore allowed the credit following the cited precedents and set aside the Commissioner (Appeals) order. [Paras 3, 4]Credit on service tax paid for mobile services allowed; denial set aside.Cenvat credit - service tax credit on catering services - Whether Cenvat credit of service tax paid on catering services was rightly denied. - HELD THAT: - The Tribunal referred to the Larger Bench decision which addressed catering services and concluded that the denial of credit on catering services was not sustainable. Applying that precedent, the Tribunal found the credit had been incorrectly denied and consequently set aside the appellate order. [Paras 3, 4]Credit on service tax paid for catering services allowed; denial set aside.Cenvat credit - service tax credit on insurance of plant and machinery - Whether Cenvat credit of service tax paid on insurance of plant and machinery was rightly denied. - HELD THAT: - The Tribunal held that insurance on plant and machinery constitutes expenditure that enters into costing and therefore is eligible for Cenvat credit. The denial of credit on this ground was rejected and the appellate authority's order was set aside accordingly. [Paras 3, 4]Credit on service tax paid for insurance of plant and machinery allowed; denial set aside.Final Conclusion: Appeal allowed; the Commissioner (Appeals) order denying Cenvat credit in respect of service tax paid on mobile services, catering services and insurance on plant and machinery set aside and credit allowed, following the cited precedents. The appeal was against denial of Cenvat credit for Service tax paid on Insurance, Catering Services, and Mobile Services. The Tribunal allowed the appeal citing precedents where similar credits were allowed. The Commissioner's order was set aside, and the appeal was allowed.