2018 (1) TMI 1214 - AT - Service Tax

Appellant's Pre-2011 Service Credits Upheld; Remand for Timing Determination

The Tribunal found merit in the appellant's contentions regarding credit availed on Real Estate Agency Service, Rent-a-Cab Service, and Insurance ... CENVAT credit - input services - Real Estate Agency Service - Rent-a-Cab Service - Insurance (Mediclaim Policy) Service - appellant case is that the disputed services have been availed by the appellant prior to 1.4.2011 and the invoices were also raised prior to 1.4.2011 whereas the department however has issued SCN for the period after 1.4.2011 also - Held that: - In the Master circular dt. 29.4.2011, the Board has clarified that if the services are availed prior to 1.4.2011 then even if the credit is availed later, the appellant would be eligible for the same - it is deemed fit that the matter be remanded to the original authority who shall consider the question whether appellant has availed the services prior to 1.4.2011 and also to consider the eligibility of master circular - appeal allowed by way of remand. Issues: Credit availed on Real Estate Agency Service, Rent-a-Cab Service, and Insurance (Mediclaim Policy) Service prior to 1.4.2011 disallowed by the department.Analysis:1. The appellant availed credit on Real Estate Agency Service, Rent-a-Cab Service, and Insurance (Mediclaim Policy) Service, which the department deemed inadmissible. Show cause notices were issued, leading to the total disallowance of the credit on the input services by the department.2. The Commissioner (Appeals) allowed the credit on Rent-a-Cab services for the period before 1.4.2011 but disallowed the credit on Real Estate Agency service and Insurance services. The appellant argued that the services were availed before 1.4.2011 and relied on a Master Circular to support their eligibility for the credit on services availed before the specified date.3. The appellant contended that the disputed services were availed prior to 1.4.2011, and invoices were also raised before this date. The definition of 'input services' before 1.4.2011 was broad, including 'activities related to business.' The appellant provided Real Estate Agency Services to accommodate foreign nationals and employees, essential for business operations. Insurance services were for staff under specific acts. The Master circular clarified eligibility for credit on services availed before 1.4.2011, even if credit was claimed later.4. Considering the arguments and precedents, the Tribunal found merit in the appellant's contentions. The matter was remanded to the original authority to determine if the services were availed before 1.4.2011 and to consider the applicability of the Master Circular. The impugned order disallowing the credit was set aside, and the case was sent back for reconsideration.