Force Motors Ltd. wins Cenvat credit appeal for services from Airports Authority of India

The Member (T) allowed the appeal filed by M/s. Force Motors Ltd., confirming their entitlement to avail Cenvat credit for services provided by the Airports Authority of India, including landing, parking, X-ray, and aircraft maintenance. The decision was based on a previous Tribunal ruling upholding the credit claim and subsequent actions by the Commissioner and Assistant Commissioner aligning with the Tribunal's order.

---

---

Issues involved:
1. Availment of Cenvat credit for services provided by Airports Authority of India to the appellant.

Analysis:
The appeal was filed by M/s. Force Motors Ltd. against the Order-in-Appeal passed by the Commissioner (Appeals), Central Excise Pune-I. The main issue revolved around whether services provided by the Airports Authority of India to the appellant, such as landing, parking, X-ray, and aircraft maintenance, qualified as 'input service' under Rule 2(l) of the Cenvat Credit Rules, 2004. The appellant had availed a credit of Rs. 2,43,215/- as Cenvat credit for the Service Tax paid to the Authority during a specific period.

The Tribunal, in a previous Final Order, had upheld the credit claim of the appellant, stating that they were entitled to take the credit for the Service Tax paid to the Airports Authority of India. This decision was accepted by the Commissioner as well. Furthermore, the Assistant Commissioner had dropped proceedings against the appellant for a subsequent period based on the Tribunal's order. Following the precedent set by the Tribunal's previous order, the Member (T) held that the impugned order by the Commissioner (Appeals) was unsustainable and subsequently allowed the appeal.

In conclusion, the judgment favored the appellant, confirming their entitlement to avail Cenvat credit for the services provided by the Airports Authority of India. The decision was based on the Tribunal's previous ruling and the subsequent actions taken by the Commissioner and Assistant Commissioner in alignment with the Tribunal's order.

---