2017 (8) TMI 460 - AT - Central Excise

Appeal granted for CENVAT credit on various services under tax law

The Tribunal allowed the appeal challenging the denial of CENVAT credit for services like civil construction, pest control, garden maintenance, and air ... CENVAT credit - various input services - civil structure and architectural services - Held that: - I allow the appeal of the appellant and hold that the civil construction, pest control service, pandal and shamiana, garden maintenance, air travel service fall in the definition of input services - appeal allowed - decided in favor of appellant. Issues:- Denial of CENVAT credit for various services related to construction, pest control, gift, landscape, air travel, etc.- Interpretation of the definition of 'input service' under Rule 2(l) of CENVAT Credit Rules, 2004.- Applicability of judicial precedents on the eligibility of CENVAT credit for specific services.Analysis:The appeal challenged an order denying CENVAT credit for services like civil structure, architectural services, pest control, landscaping, air travel, etc., by the Commissioner (A). The appellant, engaged in manufacturing excisable goods, claimed these services were eligible for credit under Rule 2(l) of CENVAT Credit Rules, 2004. The appellant argued that the definition of 'input service' covers services related to factory setup, modernization, and repairs. Citing judicial precedents, the appellant contended that the denied services were integral to their manufacturing process.The appellant presented case laws supporting their claim, highlighting decisions where similar services were deemed eligible for CENVAT credit. They emphasized that services like construction, pest control, garden maintenance, and air travel had been recognized as 'input services' in previous rulings. The appellant voluntarily reversed credit for gift services and club memberships, acknowledging their ineligibility. The appellant's counsel referenced specific cases to establish the nexus between the disputed services and manufacturing activities, seeking a favorable decision based on established legal principles.In a detailed analysis, the Tribunal considered the arguments and case laws presented by the appellant. After reviewing the nature of each service and its relevance to the manufacturing process, the Tribunal found merit in the appellant's contentions. Relying on precedents that upheld the eligibility of similar services for CENVAT credit, the Tribunal allowed the appeal. The Tribunal held that services like civil construction, pest control, garden maintenance, and air travel fell within the ambit of 'input services' as defined under the CENVAT Credit Rules. The decision was based on a comprehensive evaluation of the legal framework and precedents cited by the appellant, leading to a favorable outcome for the appellant in reclaiming the denied CENVAT credit.This judgment underscores the importance of a nuanced interpretation of tax laws and the significance of established legal precedents in determining the eligibility of credits under the CENVAT scheme. By aligning the decision with past rulings and legal principles, the Tribunal provided clarity on the scope of 'input services' for manufacturers seeking to avail CENVAT credit, ensuring consistency and adherence to established legal standards.