2026 (1) TMI 577 - AT - Service Tax

Cenvat credit eligibility for insurance and support services for pre-April 2011 period affirmed, impugned order set aside

Denial of Cenvat credit in respect of insurance, outdoor catering, health and fitness, housekeeping and event management services for the period prior to ... Irregular Cenvat Credit - Insurance Services - Outdoor Catering services - Health and Fitness services - House Keeping and Event Management Services - period October, 2008 to March, 2011 - HELD THAT:- The issue involved is denial of Cenvat Credit in respect of certain services for the period prior to April, 2011. It is found that in respect of the same appellant, for the earlier period, the same issue has travelled up to Tribunal, wherein the Tribunal, in SATYAM COMPUTER SERVICES LIMITED VERSUS COMMISSIONER OF CENTRAL EXCISE & SERVICE TAX, HYDERABAD- II [2022 (9) TMI 1578 - CESTAT HYDERABAD], allowed the appeals filed by the appellant. It is also noted that the subject issue has also been examined and decided by the Coordinate Benches in the various cases, as relied upon by the appellant in support that these services were eligible input services for the purpose of taking credit for the period prior to April, 2011. The impugned order cannot sustain and is accordingly, set aside - Appeal allowed. Demand of Cenvat credit was confirmed for the period October 2008 to March 2011 on the allegation of 'irregular Cenvat Credit' on Insurance Services, Outdoor Catering, Health and Fitness, House Keeping and Event Management Services. The appellant argued that the dispute was periodical and squarely covered by earlier proceedings for the same assessee, where the Tribunal had already allowed credit on the same categories of 'input services' for periods prior to April 2011. The Tribunal noted the issue was 'denial of Cenvat Credit' for services availed 'prior to April, 2011' and that, for the earlier periods, Final Orders dated 12.09.2018 and 07.09.2022 had allowed the appellant's claims. It further observed that coordinate bench decisions also supported eligibility of these services as input services for the pre-April 2011 period (including cases on insurance, outdoor catering, housekeeping, health & fitness, and event management). Applying this settled position, it held that 'the impugned order cannot sustain and is accordingly, set aside.' Appeal allowed.