Appeal allowed: Cenvat credit on input services linked to output services deemed admissible

The Tribunal allowed the appeal, establishing the nexus between the input services and output services provided by the Appellant. It deemed the Cenvat credit on Short term accommodation in hotels, Rent-a-cab service, and Outdoor catering service admissible, citing the necessity and direct relation of these services to the output activities. The decision was rendered on 28/07/2020.

---

---

Issues:
- Correct availing of Cenvat credit on Short term accommodation in hotels
- Correct availing of Cenvat credit on Rent-a-cab service
- Correct availing of Cenvat credit on Outdoor catering service

Short term accommodation in hotels:
The Appellant contended that crew members needed to report one day before duty at offshore locations to receive instructions, often necessitating hotel stays due to unforeseen circumstances like canceled chopper facilities. The Tribunal noted the necessity of crew instructions from the Rig Manager for task execution and the unavailability of transportation. It concluded that the accommodation expenses were related to the output service, making the Cenvat credit admissible.

Rent-a-cab service:
The Appellant justified availing Cenvat credit for hiring vehicles to transport surveyors, naval officers, and inspection agencies for operational requirements in mining services. Referring to a precedent, the Tribunal emphasized that the definition of input service does not exclude cases where vehicles do not qualify as capital goods. Following the precedent's ratio, the Tribunal allowed Cenvat credit for the "rent-a-cab" service.

Outdoor catering service:
The Appellant hired containers to store edible items for personnel deployed on rigs to maintain healthy working conditions. The Tribunal highlighted the importance of proper food access for personnel productivity and the adverse impact of spoiled food on operations. Citing a High Court judgment, it affirmed that "Outdoor Catering" services related to manufacture and delivery processes were eligible for credit. Consequently, the Tribunal deemed the service availed by the Appellant as necessary for the output service, justifying the admissibility of Cenvat credit.

The Tribunal allowed the appeal, emphasizing the nexus between the input services and the output services provided by the Appellant. The judgment referenced specific circumstances and legal precedents to support the admissibility of Cenvat credit for Short term accommodation in hotels, Rent-a-cab service, and Outdoor catering service. The decision was pronounced on 28/07/2020.

---