TaxTMI 
TaxTMI 
2015 (11) TMI 903
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.... the registered premises, the Commissioner (Appeals) has erred in allowing the CENVAT Credit of the same. 2. The brief facts of the case are that for the period 2005-06 to 2010-11 (upto Sept. 2010) vide show-cause notice dated 20.4.2011, it was alleged that the respondent assessee have availed CENVAT Credit, the input service being Air Travel Agent, security services. On the verification of the bills of the Air Travel Agent, it appeared that the invoice issued by the service providers pertain to booking of air ticket, rail tickets in the name of the personnel of the assessee. 2.1 As regards the security service, it was found that the same was provided at the residential premises and Cenvat amount of Rs. 41,181/- is not admissible. In the ....
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....for the business purposes of the assessee company. It was further stated that the traveling is held for the business purposes and CENVAT Credit is eligible on the input service of Air Travel Agent. Further, reliance was placed on the ruling of this Tribunal in the case of M/s Heartland Bangalore Transcription Ser. (P) Ltd. Vs. Commissioner of Service Tax, Bangalore 2011 (21) STR 430 (Tri-Bang), wherein the refund of CENVAT Credit with respect to the input services of Air Travel Agent was claimed under Section 5 of Cenvat Credit Rules, 2004. It was held that the service of Air Travel Agent has been received for traveling of Executive to different locations to meet client for canvassing and for training and also called marketing and pro....
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.... of Rs. 8,64,841/- availed in respect of Air Travel agent service and was pleased to disallow the credit of Rs. 48,141/- in respect of security services with respect to Civil Line premises at Nagpur. Further, penalty imposed under Rule 15 of Cenvat Credit Rules, 2004 read with Section 78 was accordingly reduced to Rs. 48,181/- and the appeal was allowed in part. The relevant findings have been recorded in para 7 of the impugned order which is reproduced herein for ready reference: - "7. Regarding credit of Service Tax paid on booking of air ticket, the appellants have vehemently contended in their appeal that the lower authority held that the service on which credit has been taken must be in nexus with output service is prima facie incorr....
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....s produced sample copies of invoices even before the lower authority while replying to the show-cause notice but he has denied the credit with a pre-determined mind without verifying the invoices, which is not correct. Therefore, I hold that the said decision of the Hon'ble High Court of Bombay is squarely applicable to the present case. The availement of CENVAT Credit of Rs. 8,64,841/- on the said service is thus in order. There are also catena of decisions on this issue supporting appellants plea, delivered by the Hon'ble CESTAT." 3. Being aggrieved, the Revenue is in appeal against allowance of CENVAT Credit in respect of Air Travel Agent service on the ground that the invoice raised by the service provider pertain to tickets issu....
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....beverage (aerated water) manufactured by the bottler from it. Further the explanation also explains the rational for business being arranged in this industry in a particular manner. This method of doing business avoids unnecessary transport of large quantity of water. In addition, the bottles and the crates have to be collected back from the shop keepers or dealers and taken back to the factory for filling the fresh batch on a constant basis. At all times, quality of beverage, marketing support of the beverages is done by the brand name holder-cum-concentrate manufacturer. Thus, what follows from the above discussion is that the credit is availed on the tax paid on the input service, which is advertisement and not on the contents of the adv....
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....ssee. If the activity is not integrally connected with the business of the manufacture or final product, the service would not qualify to be a input service under Rule 2(l) of the 2004 Rules. The Hon'ble High Court also referred to its earlier judgment in the Coca Cola case and also referred to the Larger Bench ruling of this Tribunal in the case of GTC Industries Ltd. 2008 (12) STR 468 (Tri-LB). He, accordingly, prays for upholding the impugned order as CENVAT Credit in respect of Air Travel Agent Service has been rightly held to be relevant to the business of the assessee. 5. Having considered the rival contentions and in view of the nature of the business of the assessee being mainly works contract, wherein the works are situa....