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of <h1>Tribunal Upholds Cenvat Credit for Mobile, Rent-a-cab, Commission, and Courier Services</h1> <h3>Commissioner of Customs & Central Excise, Raipur Versus HEG Ltd. (Sponge Iron Division)</h3> The Tribunal upheld the decision to allow Cenvat credit on mobile services, Rent-a-cab services, commission on sales, and courier services. It found that ... Cenvat Credit-mobile service- rent a cab services- commission on sale-courier services- The Commission on sale is clearly relates to sale promotion activities. courier services are used in respect of receiving and sending of communication in relation to their business sale purchase activities. rent a cab services are used in relation to transport of employees and the officials involving manufacturing and related activities of the company. Commissioner (Appeals) held that the same has been used in connection with the business activities of the company, therefore credit has been allowed. Tribunal held that- there is no valid reason to interfere with the order of Commissioner (Appeals). The appeal by the department is rejected. Issues:- Appeal against allowing Cenvat credit of service tax on mobile services, Rent-a-cab services, commission on sales, and courier services.Analysis:1. Mobile Services: The Department argued that these services were not used in or in relation to the manufacture of the final product. However, the authorized representative contended that mobile services qualify as input services based on precedents like Grasim Industries and Saurashtra Chemicals Ltd. The Tribunal agreed, citing these cases and allowed the credit on service tax paid on mobile services.2. Rent-a-cab Services: The authorized representative argued that Rent-a-cab services were used in relation to transporting employees involved in manufacturing activities. Referring to the Cable Corpn. of India Ltd. case, it was established that such services indirectly contribute to manufacturing and promoting business efficiency. The Tribunal upheld this argument and allowed the credit on Rent-a-cab services.3. Commission on Sales: The representative asserted that commission on sales falls under 'sales promotion' expenses, which are covered under the definition of input services. As a result, the Tribunal agreed that commission on sales should be allowed as a credit.4. Courier Services: The Commissioner (Appeals) had already allowed the credit on courier services, stating they were used in connection with the business activities of the company. The Tribunal found this decision reasonable and legally sound, affirming that courier services, along with the other three services, were indeed utilized in connection with the company's business activities.5. Final Decision: After considering the arguments and precedents presented by both sides, the Tribunal concluded that there was no valid reason to overturn the order of the Commissioner (Appeals). Consequently, the Department's appeal was rejected, and the decision to allow Cenvat credit on the specified services was upheld.
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