Tribunal remands case on disputed CENVAT credit for services from G4S Facility Services

The Tribunal remanded the case concerning disallowed CENVAT credit for services from G4S Facility Services amounting to Rs. 6,60,381. The appellant argued the services were in the nature of Manpower Recruitment and Supply Agency Service, supported by the agreement detailing services like front office and housekeeping. The respondent contended the services were not manpower recruitment services, citing canteen facilities and gym maintenance. The Tribunal found the nature of services had not been previously discussed and remanded the matter for verification, setting aside the impugned order and allowing the appeal by way of remand.

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Issues:
Disallowed CENVAT credit for various services availed by the appellant, specifically from G4S Facility Services.

Analysis:
The case involved the disallowance of CENVAT credit for services availed by the appellant, focusing on the services provided by G4S Facility Services. The appellant contended that the services were in the nature of Manpower Recruitment and Supply Agency Service based on the agreement between them and G4S. The agreement detailed services like front office, housekeeping, canteen facilities, etc., which the appellant argued were for manpower to execute various works. Payment was based on man-hours, indicating a supply of manpower. The appellant asserted that since the service period was post-2012, classification of service was not necessary, and all services not in the negative list were taxable. The appellant argued that the credit was rightfully claimed.

The respondent, however, supported the original order's findings, stating that the services provided by G4S were not manpower recruitment or supply agency services. The respondent highlighted services like canteen facilities and gym maintenance, which were excluded from input services. The respondent also pointed out that the appellant's plea regarding the nature of services was raised for the first time and required verification.

After hearing both sides, the Tribunal considered the issue of disallowance of credit for services from G4S Facility Services amounting to Rs. 6,60,381. The Tribunal noted the arguments presented by both parties and examined the annexure to the agreement, which indicated payment based on man-hours and additional manpower requirements. A letter from Lenovo to G4S Facility Services requesting additional headcounts for catering services was also considered. However, the Tribunal observed that the nature of services as manpower recruitment and supply agency service was not discussed in previous orders, and the appellant had not raised this contention earlier. Therefore, the matter was remanded to the adjudicating authority for verification, directing a review of documents and the appellant's plea. The impugned order was set aside to that extent, and the appeal was allowed by way of remand.

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