Appellant's CENVAT credit appeal partially allowed, involving services like courier, pest control, medical maintenance, and hotel.

The appellant's appeal involved the denial of CENVAT credit on various services. The First Appellate Authority disallowed credit for certain services, including Courier/Transportation Service, Pest Control Service, Employee Medical Maintenance Service, and Hotel Service. The Tribunal remanded the issue of Courier/Transportation Service for re-adjudication and set aside the denial of credit for Pest Control Service, Employee Medical Maintenance Service, and Hotel Service. The appeal was partly allowed and partly remanded, with the order pronounced on 25.07.2019.

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Issues Involved:
1. Denial of CENVAT Credit on various services.
2. Eligibility of CENVAT Credit on Courier/Transportation (GTA) Service.
3. Eligibility of CENVAT Credit on Pest Control Service.
4. Eligibility of CENVAT Credit on Employee Medical Maintenance Service.
5. Eligibility of CENVAT Credit on Hotel Service.

Issue-wise Detailed Analysis:

1. Denial of CENVAT Credit on Various Services:
The appellant availed input service credit on multiple services such as Insurance Agency Service, Telephone Service, Business Auxiliary Service, Travel Agency Service, etc., amounting to Rs. 70,69,012/- for the period from October 2010 to March 2011. The Revenue disallowed Rs. 13,09,265/- related to Business Auxiliary Services, arguing these services were not used directly or indirectly in the manufacture of final products or related activities as per Rule 2(l)(ii) of the CENVAT Credit Rules, 2004. The First Appellate Authority allowed credit for certain services but disallowed others like Courier/Transportation Service, Pest Control Service, Employee Medical Maintenance Service, and Hotel Service.

2. Eligibility of CENVAT Credit on Courier/Transportation (GTA) Service:
The First Appellate Authority disallowed credit beyond the factory gate. The Tribunal noted the absence of an agreement/contract on record and remanded the issue to the Adjudicating Authority for re-adjudication in light of the C.B.I.C. Circular No. 1065/4/2018-CX dated 08.06.2018 and the Supreme Court decisions in M/s. Ultra Tech Cement Ltd. and M/s. Roofit Industries Ltd.

3. Eligibility of CENVAT Credit on Pest Control Service:
The Tribunal referenced the case of M/s. Hindustan Coca-Cola Beverages Pvt. Ltd. Vs. Commissioner of G.S.T. & Central Excise, where pest control services for premises storing inputs like sugar were deemed essential and eligible for credit. Following this precedent, the Tribunal set aside the denial of credit for Pest Control Service.

4. Eligibility of CENVAT Credit on Employee Medical Maintenance Service:
The Tribunal considered the appellant’s argument that medical examinations for employees are mandated by the Factories Act, 1948. Citing decisions like M/s. HCL Technologies Ltd. Vs. Commissioner of Cus., C.Ex. & S.T., Noida and others, the Tribunal concluded that Employee Medical Maintenance Service is an input service and set aside the denial of credit.

5. Eligibility of CENVAT Credit on Hotel Service:
The Tribunal referred to the decisions of the Mumbai Bench in M/s. Warburg Pincus India Pvt. Ltd. and the Delhi Bench in M/s. Adobe Systems India Pvt. Ltd., which supported the appellant's claim. Consequently, the denial of credit for Hotel Service was set aside.

Conclusion:
- The matter regarding Courier/Transportation (GTA) Service is remanded for re-adjudication.
- The denial of CENVAT Credit for Pest Control Service, Employee Medical Maintenance Service, and Hotel Service is set aside.
- The appeal is partly allowed and partly remanded.

(Order pronounced in the open court on 25.07.2019)

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