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of <h1>Appellant wins Cenvat credit appeal for renting-a-cab & catering services.</h1> The appellant successfully challenged the denial of Cenvat credit for renting-a-cab service and outdoor catering service. The Member (Judicial) upheld the ... CENVAT Credit - input services - renting-a-cab service during the period 2011-12, credit denied on the ground that definition of input service w.e.f. 01.04.2011 excludes the service - outdoor catering service during the period 2014-15, credit denied on the ground of nexus? - HELD THAT:- Although the Appellants have received rent-a-cab service prior to 01.04.2011 which is supported by the documentary evidence wherein the travel date is prior to 01.04.2011 but the invoices has been recorded in the books of accounts and in Cenvat credit register post 01.04.2011, which still make the appellant eligible to avail the Cenvat credit - the decision of this Tribunal in the matter of M/S MEDIACOM MEDIA INDIA PVT. LTD. VERSUS C.C.G. ST., MUMBAI EAST [2019 (10) TMI 690 - CESTAT MUMBAI] supports the present case. Even the circular dated 29.4.2011 issued by the Government clarified that the credit in respect of rent a cab service would be available in case the provision of the service was completed before 1.4.2011. Outdoor catering services - HELD THAT:- The amount which pertains to air travel service has to be deducted from the total amount of Rs.1,66,860/- as Air travel service has already been allowed by the Authority below. Once the amount of air travel service is deducted from the total amount of Rs.1,66,860/- then only Rs.1,837/- remains under the head outdoor catering service. Now I have to see whether the appellant is eligible to avail the credit of Rs.1,837/- which relates to outdoor catering service. The said service has been used by appellant for providing meals to its employees round the clock and certainly the same is going to enhance efficiency and performance of the appellant’s employees which undoubtedly has nexus with the output service and therefore the credit is admissible - Undisputedly the said service is used by the appellant for its business activity during office hours and not as a personal or welfare measure for its employees nor it’s a perquisite provided by the appellant to its employees. Other issues like extended period, penalty etc. not entered upon - appeal allowed - decided in favor of appellant. Issues: - Whether Cenvat credit for renting-a-cab service during 2011-12 and outdoor catering service during 2014-15 was rightly denied to the appellantRs.Analysis:The appeal challenged an order reducing disallowed Cenvat Credit from Rs. 22,86,677 to Rs. 2,26,406 by the Commissioner of GST & CX (Appeal)- I, Mumbai Zone. The main issue revolved around the denial of Cenvat credit for renting-a-cab service and outdoor catering service. The appellant contended that these services were essential for their business activities and should be eligible for credit.During the proceedings, the appellant's counsel argued that the rent-a-cab service had been utilized before the exclusion date of 01.04.2011, even though the invoices were recorded post that date. The counsel cited a Tribunal decision and a government circular to support the eligibility of Cenvat credit for pre-exclusion period services. Regarding outdoor catering service, the appellant justified its use as a means to enhance employee performance and efficiency during office hours, emphasizing its nexus with output services.The Member (Judicial) analyzed the case records and found merit in the appellant's arguments. For rent-a-cab service, the appellant's eligibility for Cenvat credit was upheld based on the pre-exclusion service utilization and supporting legal references. Concerning outdoor catering service, the Member agreed with the appellant's reasoning that the service directly contributed to business efficiency and was not a personal or welfare measure for employees. The Member referenced previous Tribunal decisions to support the admissibility of credit in such cases.Consequently, the appeal was allowed in favor of the appellant, with relief granted as per the law. Other issues like extended period and penalties were not delved into due to the favorable decisions on the main issues. The judgment was pronounced on 18.11.2022, affirming the appellant's right to avail Cenvat credit for the specified services.
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