CENVAT credit on business travel services was allowed where the travel supported export-linked output services.

CENVAT credit on air travel agent services used for business travel connected with the provision and export of output services was treated as admissible, and the related refund was allowed. The record showed that the services were availed for business necessity rather than personal use, and the supporting documents, including the Chartered Accountant's certificate, were produced in compliance with the defect memo. Under Rule 2(l) of the CENVAT Credit Rules, 2004, the exclusion for travel benefits to employees on vacation or for personal use does not apply where the service has a direct link with output services.

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Issues: Whether CENVAT credit and consequential refund were admissible on air travel agent services used for the appellant's business travel in connection with exported output services.

Analysis: The disputed credit was claimed against unutilized CENVAT credit accumulated during export of services. The record showed that the air travel agent services were availed for business travel connected with the provision and export of the appellant's output services, and the supporting documents produced showed business necessity rather than personal use. Under Rule 2(l) of the CENVAT Credit Rules, 2004, the exclusion applies to travel benefits to employees on vacation and services used primarily for personal use or consumption of employees, whereas services having a direct link with output services are not excluded. The objection that the relevant documents had not been produced was found to be unsupported by the record, and the Chartered Accountant's certificate had also been furnished in compliance with the defect memo.

Conclusion: CENVAT credit on air travel agent services was admissible and the related refund was allowable in favour of the assessee.

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