Tribunal Partially Allows Appeals, Sets Aside Some Demands

The Tribunal partially allowed the appeals, setting aside the demand on Rent-a-Cab Service for April 2008 to March 2009 and on Water Treatment and Garden Maintenance Services for January 2015 to December 2015. However, the demand on Rent-a-Cab Service for December 2011 to October 2012 was upheld with interest. The decision was rendered on 19.12.2018.

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Issues: Denial of CENVAT Credit on Rent-a-Cab Services, Water Treatment Service, and Garden Maintenance Service.

Rent-a-Cab Services Issue:
The appellant contended that Rent-a-Cab Service falls under the inclusive definition of "input service" under Rule 2(l) of CCR, 2004, even post 01.04.2011. The appellant argued that the service is essential for deploying employees for work at odd hours or official duties within the city. The Tribunal noted that the appellant was eligible for CENVAT Credit on Rent-a-Cab Services for the period prior to 01.04.2011. However, post-amendment, Rent-a-Cab Service was specifically excluded from the definition of "input service." Therefore, the demand for Rent-a-Cab Services for the period from December 2011 to October 2012 was upheld.

Water Treatment and Garden Maintenance Services Issue:
The appellant justified availing CENVAT Credit on Water Treatment and Garden Maintenance Services, stating their necessity for statutory compliance and enhancing productivity. The Tribunal observed that Water Treatment Service was mandatory as per Pollution Control Board norms, and Garden Maintenance Service contributed to a better work atmosphere. Citing precedents, the Tribunal concluded that the appellant rightly availed Credit on these services. The demand raised on Water Treatment Service and Garden Maintenance Service for the period January 2015 to December 2015 was set aside.

Overall Decision:
The Tribunal partially allowed the appeals by setting aside the demand on Rent-a-Cab Service for the period from April 2008 to March 2009 and on Water Treatment Service and Garden Maintenance Service for the period January 2015 to December 2015. However, the demand on Rent-a-Cab Service for the period from December 2011 to October 2012 was upheld with interest. The Tribunal's decision was pronounced in open court on 19.12.2018.

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