Tribunal allows Cenvat credit post-10-9-2004, remands for inadmissible credit calculation & penalty reassessment.

The Tribunal allowed Cenvat credit for repair and maintenance, security, and other services utilized post-10-9-2004, but disallowed credit for services used before that date and credit card services. The matter was remanded to calculate the proportionate inadmissible credit and reconsider the penalty. The Tribunal emphasized the need for re-working the inadmissible credit and directed a reassessment of the penalty if necessary, providing an opportunity for the appellants to present their case.

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Issues:
1. Availment of Cenvat credit on various input services.
2. Disallowance of Cenvat credit on services utilized prior to 10-9-2004.
3. Disallowance of Cenvat credit on credit card services and security services.
4. Interpretation and admissibility of Cenvat credit on different services.
5. Re-working of inadmissible credit and imposition of penalty.

Analysis:
1. The appellants availed Cenvat credit on services like repair and maintenance, security agency, C&F agents, warehousing, and credit card services. The Commissioner (Appeals) allowed Cenvat credit on services utilized at the port for export but disallowed credit on services used before 10-9-2004 and credit card services, leading to the appeal.

2. The CA argued that the security services were provided for multiple areas, not just the residential colony, and fell under the specified services for full credit under Rule 6(5) of Cenvat Credit Rules. The Tribunal found the credit admissible for security services and directed the Original Adjudicating Authority to calculate the proportionate credit for repair and maintenance services and other services used post-10-9-2004.

3. Regarding repair and maintenance and management consultancy services, the Tribunal agreed with the CA that proportionate credit should be allowed for the period post-10-9-2004 based on the invoices provided. The Tribunal also supported the appellants' argument using a circular for pro rata collection of service tax for advance services.

4. The Cenvat credit on credit card services was disallowed, while security agent services were allowed. The Tribunal remanded the matter to the Original Adjudicating Authority to calculate the proportionate inadmissible credit for services used before 10-9-2004. The penalty was set aside for re-consideration along with the revised credit calculation.

5. Given the interpretation and admissibility issues, the penalty was set aside for reconsideration, allowing the appellants an opportunity to present their case. The Tribunal emphasized the need for re-working the inadmissible credit and directed the Original Adjudicating Authority to reassess the penalty if required.

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