2023 (7) TMI 253 - AT - Central Excise

Tribunal grants appeal on Cenvat credit for essential services, emphasizes consistency in decisions

Aurangabad Electricals Ltd. Versus Commissioner of Central Excise & Service Tax, Aurangabad

Aurangabad Electricals Ltd. Versus Commissioner of Central Excise & Service Tax, Aurangabad - TMI Issues involved:The appeal challenges the rejection of Cenvat Credit on Manpower Service by the Commissioner (Appeals), GST & CX, Nashik.Details of the judgment:Issue 1: Availment of Cenvat credit on Manpower Recruitment ServiceThe appellant contested the rejection of Cenvat Credit on Manpower Service, specifically office boy and driver services, essential for smooth manufacturing operations. The appellant argued that these services fall under the definition of 'input service' as per Rule 2(l) of Cenvat Credit Rules, 2004. Previous orders in favor of the appellant for similar services were cited. The Revenue, however, claimed that the disputed services do not meet the criteria of an input service. The Tribunal noted that a previous Order-in-Appeal on the same issue had been misinterpreted by the Commissioner (Appeals), leading to an incorrect decision. The Tribunal emphasized that the Revenue cannot take a contrary view on the same issue, as it would create confusion and inconsistency in the law. Citing a similar case, the Tribunal ruled in favor of the appellant based on previous decisions and set aside the impugned order, allowing the appeal with consequential relief.Conclusion:The Tribunal ruled in favor of the appellant, setting aside the impugned order and allowing the appeal related to the availment of Cenvat credit on Manpower Recruitment Service.