AI Drafter - (New and Powerful) 
Generate professional replies, appeals, opinions to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter. 
TaxTMI 
TaxTMI 
2018 (5) TMI 488
X X X X Extracts X X X X
X X X X Extracts X X X X
....se notice alleging that they have wrongly availed credit on input services viz. beauty treatment, Health club, Rent A cab, Tour Operators, Rail Travel Agent, Mandap Keeper, Outdoor caterers, interior decorators, Pandal and Shamiana Contractors. It was alleged that the impugned services are not used for providing output service of Telecommunication service, business auxiliary service, consulting engineer service, maintenance and repair service &manpower recruitment services and therefore does not fall into category of "Input Services". Hence not eligible to avail credit. Since wrongly availed and utilized therefore the same is liable to be disallowed. It was proposed to disallow and recover the credit availed during the period October' 2006 ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....aid to be the services used for providing output service or used in the business of providing output service. The adjudicating authority held that since the irregularity was detected at the time of audit and the facts were not brought into the knowledge of department. That the deviation in following the provisions of law means deliberate and intentional act so as to avail inadmissible credit illegally or to evade payment of tax. The adjudicating authority thus also imposed penalty u/s 78 of the Finance Act, 1994. Hence the present appeal. 2. Shri Gopal Mundhra, ld. CA appearing for the Appellant submits that the credit has been disallowed vaguely and without any reason. He submits that the impugned services were used for business purpose....
X X X X Extracts X X X X
X X X X Extracts X X X X
....the services were used for designing the office premises to carry out the business operations smoothly. Obviously without proper office designing the business operations cannot run properly and hence we are of the view that Appellant is eligible for the credit as held in case of One Advertising & Communication Services 2012 (27) STR 344 (TRI), Bharat Fritz Werner Ltd. 2011 (22) STR 429 (TRI). Further the credit was allowed by the Tribunal in case of Lupin Ltd. 2012 (285) ELT 207 (TRI), Carrier Airconditioning & Refrigeration Ltd. 2016 (41) STR 824 (TRI), Exide Industries Ltd. 2016 (43) STR 463 (TRI). In case of M/s Cadila health care Ltd. 2013 (30) STR 3 (Guj) the credit stands allowed by the Hon'ble High Court of Gujarat. 6. In case of ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....Ltd. 2016 (335) ELT 660 (TRI) and Orient Bell Ltd. 2017 (52) STR 56 (TRI). Further in case of HEG Ltd. 2011 (24) STR 275 (Chhatisgarh) and Maruti Suzuki India Ltd. 2017 (52) STR 369, the credit was allowed on similar facts. The Club and Association services has also been used hosting corporate events and business meetings and they also have to be considered as input service and credit stands allowed in case of Qualcomm India Pvt. Ltd. 2016 (42) STR 886 (TRI) and Alliance Global Services IT India (P) Ltd. 2016 (44) STR 113 (TRI). The rail travel agent services has been availed for travelling of employees for business purposes only and therefore it also qualify as Input Service as held in case of Jindal Pipes Ltd. 2013 (31) STR 588 (TRI), Nav....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ent Service. However as contended by the Appellant and on perusal of invoices we find that the services are nowhere of said category. The total credit involved in both the service is merely Rs. 20,784/-. The Bills produced before us shows that the bills were raised on account of Address verification by M/s Sachdeva Sales and M/s Ayush Trading Corporation, Retailer's Incentive bill by M/s Jai Durgee Agencies, Bill raised for CDMA Data by M/s Arunodya Corporate Services towards CDMA Data and bill raised by M/s Aarti Construction service. All the service providers are registered under the category of Business Auxiliary Services. Thus we find that there is no reason to hold the services covered under beauty treatment service and to deny the cre....