2018 (3) TMI 1003

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.... availed total Cenvat Credit of Rs. 11,13,479/- of the Service Tax paid on Input Services viz., Catering Charges, Insurance Premium on employees, Insurance charges on Vehicles and Brokerage charges paid for arranging residential premises for employees. A show cause notice was issued to them for recovery of the credit of Rs. 11,13,479/- with interest and penalty. On adjudication, the demand was confirmed with interest and penalty. Aggrieved by the said order, the appellant filed appeal before the Ld Commissioner (Appeals), who in turn, rejected their appeal. Hence, the present appeal. 3. The Ld Chartered Accountant for the respondent submits that out of the total credit of Rs. 11,13,479/- confirmed, credit of Rs. 1,56,664/- was denied on ....

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.... are not required as per Rule 4 of the Service Tax Rules, 1994. Consequently, credit of Service Tax paid on various services received in providing output services at their Branches Mumbai, Nadiad and Mehsana definitely admissible to them. 4. With regard to the denial of credit of RS 9,56,815/- the Ld Advocate has submitted that it relates to credit availed on Outdoor Catering charges, Insurance charges on employees, Insurance charges on Vehicles and Brokerage charges paid for arranging residential premises for the employees. As far as Catering Charge is concerned, the Ld Advocate submitted that the said services are provided during the course of testing and analysis of the effect of the existing drugs and new drugs on the human beings. D....

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....used the records. 7. I find that the respondent had centralized billing system at Ahmedabad and discharged Service Tax applicable on output services rendered at various locations, including Mumbai, Nadiad and Mehsana. Therefore, it is not necessary for the respondent as per the proviso to Rule 4 of Service Tax Rules, 1994 to get Branch offices registered with the Service Tax Dept so as to be eligible to avail Cenvat Credit of the services received at various Branch offices during the relevant time. In the result, credit of Rs. 1,56,664/- is admissible to the respondent. As far as the credit on input services viz., canteen services provided to the patients during the course of clinical test on them it has direct nexus with the output serv....