CESTAT AHMEDABAD Allows Appeal for CENVAT Credit on Input Services

The appeal was allowed by the CESTAT AHMEDABAD, setting aside the Commissioner's order. The appellant was found entitled to avail CENVAT Credit of Service Tax paid on various services, including Air/Rail Travel Agency Service, Banking and Financial Services, Broad Band and Internet Service, based on established judgments. The services were held to be input services under Rule 2(l) of CCR, 2004, leading to the decision in favor of the appellant with consequential relief as per the law.

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Issues:
Entitlement to avail CENVAT Credit of Service Tax paid on various services.

Analysis:
The appeal was filed against an order passed by the Commissioner of Central Excise, Customs, and Service Tax (Appeals) -VADODARA-I. The main issue in this case was whether the appellants were entitled to avail CENVAT Credit of the Service Tax paid on various services, including Air/Rail Travel Agency Service, Banking and Financial Services, Broad Band and Internet Service, and others. The appellant's advocate cited several judgments from the Tribunal and High Courts to support the eligibility of credit for these services.

The advocate referred to judgments such as Reliance Industries Ltd. Vs. CCE & ST, Mumbai, Abacus Distribution Systems (I) Pvt Ltd vs CST, Mumbai, HP Finance Service - MPI Machines Ltd, and others to establish the eligibility of credit for different services. The advocate argued that these services are considered input services as per the definition under Rule 2 (l) of CCR, 2004, based on the judgments cited. The Revenue's Authorized Representative reiterated the findings of the Commissioner (Appeals).

The Member (Judicial) analyzed the case and found that the services in question were held to be input services within the definition of 'Input Service' under Rule 2 (l) of CCR, 2004, as established in the cited judgments. Consequently, the impugned order was set aside, and the appeal was allowed with any consequential relief as per the law. The decision was dictated and pronounced in the open court by Dr. D.M. Misra, Hon'ble Member (Judicial) at the Appellate Tribunal CESTAT AHMEDABAD.

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