Tribunal reverses denial of CENVAT credit for rent-a-cab services. Remand for verification of service consumption date.

The Tribunal set aside the Commissioner (Appeals)' decision disallowing CENVAT credit on rent-a-cab services for the period April 2011 to May 2011. The case was remanded to the adjudicating authority to verify if the services were consumed before 1.4.2011, as claimed by the appellant. The Tribunal emphasized that if services were availed before the specified date, the credit post that date is permissible, directing consideration of relevant precedents and the Board's circular. The appeal was allowed for further examination by the authority.

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Issues:
1. Eligibility of CENVAT credit on rent-a-cab services consumed before 1.4.2011.

Analysis:
The case involved the appellant, engaged in manufacturing excisable goods, availing CENVAT credit on various input services, including rent-a-cab services for picking up and dropping employees. A show cause notice was issued for disallowing the credit on rent-a-cab services for the period April 2011 to May 2011. The Commissioner (Appeals) upheld the demand, interest, and penalty, leading to the appeal before the Tribunal.

The appellant's counsel argued that the rent-a-cab services were consumed before 1.4.2011, even though payments were received after that date. Citing the Board's Master Circular and precedents, the counsel contended that if services were availed before 1.4.2011, the credit availed later is eligible. The invoices supported the claim that services were consumed prior to the specified date.

On the other hand, the respondent's representative supported the findings of the impugned order, stating that verification was needed to confirm the consumption date of services. The Tribunal considered the arguments and evidence presented. It noted the Board's circular, emphasizing that if services were availed before 1.4.2011, the credit post that date is permissible. Referring to a relevant case law, the Tribunal found merit in the appellant's claim but deemed it necessary to verify the consumption date of services.

Consequently, the Tribunal set aside the impugned order and remanded the case to the adjudicating authority for verifying whether the services were indeed consumed by the appellant before 1.4.2011. The authority was directed to consider the applicability of the cited decision and the binding nature of the Board's circular. The appeal was allowed for further examination by the adjudicating authority.

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