2018 (12) TMI 544 - AT - Central Excise

Tribunal grants cenvat credit for input services including rent-a-cab for manufacturing and sales

M/s Unique Pharmaceuticals Laboratories Versus C.C.E. & S.T., - Vadodara-ii

The Tribunal allowed the appellant's claim for cenvat credit on various input services totaling INR 13,28,274, including rent-a-cab service, for use in ... CENVAT Credit - various input services - denial of account of nexus in or relation to manufacture of final product - Held that:- All the input services have been held as input services in various judgments cited by the Ld. Counsel, accordingly, all the services are indeed input services and credit is admissible. Rent-a-cab - Held that:- On perusal of invoice, it is found that in fact it is not rent-a-cab whereas it is service of supply of tangible goods which was used for organizing medical camp which is in connection to promotion of their product, therefore, it is an input service - credit allowed. Credit allowed - appeal allowed - decided in favor of appellant. Issues:Whether the appellant is entitled to cenvat credit for specific input services.Analysis:The appellant claimed cenvat credit for various input services, including renting of immovable property, work contract service, air travel agent, mandap keeper, club or association service, rent-a-cab, authorized service station, photography, tour operator, and courier service, totaling to INR 13,28,274. The appellant argued that all these services were used in relation to the overall manufacturing and sale of goods, thus falling under the definition of input services. The appellant relied on multiple judgments where similar credits were allowed, such as Unique Pharmaceutical Laboratories, Styrolution ABS India Limited, and Hindustan Petroleum Corporation Ltd. The appellant specifically highlighted that the rent-a-cab service was actually a supply of tangible goods used for organizing a promotional camp, making it eligible for credit.The Revenue, represented by Ms. Nitina Nagori, reiterated the findings of the impugned order, denying the credit for the input services in question.After considering the submissions from both sides and reviewing the records, the Tribunal, led by Shri Ramesh Nair, Member (Judicial), found that the input services in question had been consistently considered as eligible for credit in previous judgments. The Tribunal agreed with the appellant's arguments and allowed the credit for all services. Regarding the rent-a-cab service, upon examining the invoice, it was determined that the service was actually a supply of tangible goods used for organizing a medical camp related to product promotion, thus qualifying as an input service. The Tribunal emphasized that the admissibility of cenvat credit on such input services had been extensively discussed and confirmed in previous judgments, obviating the need for further debate. Consequently, the impugned order was set aside, and the appeal was allowed.In conclusion, the Tribunal's decision favored the appellant, allowing cenvat credit for all the disputed input services based on established legal precedents and the specific circumstances surrounding the rent-a-cab service.