Input service credit eligibility turned on whether services were availed before 1.4.2011 and the circular's effect on later credit.

Input service credit under the pre-1.4.2011 definition had a broad scope, including business-related activities. Credit on real estate agency and insurance/mediclaim services was claimed on the basis that the services were used for foreign visitors, employee accommodation and staff insurance, with invoices and receipt said to be before 1.4.2011 even though credit was taken later. The cited Master Circular indicated that later availment alone would not disentitle credit if the services had been availed before that date. The matter was remanded for factual verification of when the services were actually availed and for reconsideration of credit eligibility under the circular.

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Issues: Whether credit of service tax paid on real estate agency service and insurance/mediclaim service was admissible where the services and invoices were stated to have been received before 1.4.2011, and whether the Master Circular No. 943/4/2011-CX dated 29.04.2011 governed the availment of credit.

Analysis: The definition of input services prior to 1.4.2011 had a wide ambit, including activities related to business. The appellant's claim was that the disputed services were used for accommodation of foreign visitors, residential accommodation for employees, and staff insurance, and that the invoices and receipt of services were before 1.4.2011 though credit was taken later. The circular relied on also indicated that where services were availed before 1.4.2011, later availment of credit would not by itself disentitle the claimant. The record, however, required verification on the factual aspect of when the services were actually availed.

Conclusion: The matter was remanded to the original authority to reconsider whether the services were availed before 1.4.2011 and to examine the applicability of the Master Circular for deciding eligibility of credit.

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