AI Drafter 
TaxTMI 
TaxTMI 
2025 (4) TMI 509
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....roposed in the SCN for the reason that it pertained to even beyond the extended period of five years. 2. The appellant is an institute of the Gas Authority of India Ltd. [GAIL] and is responsible for providing training to the employees of GAIL. It also provides training to other persons for which it charges a fee and such training is "commercial coaching and training". The appellant was registered with the Service tax department and has been paying service tax on such service. It has also been availing CENVAT credit on the inputs and input services. 3. Sometimes, employees of GAIL need to be trained at other institutes and those institutes raise invoices in the name of the appellant along with service tax. The appellant had availed CENVAT credit of the service tax paid on such invoices. Undisputedly, the employees who were trained were not the employees of the appellant but of GAIL and after training, they go back to their respective jobs in GAIL. 4. The case of the Revenue is that since the service provided by the other training institutes in training employees of GAIL is not an "input service" for the output services (commercial training and coaching services) provided b....
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....ees of GAIL. It's third submission is that the employees of GAIL so trained can also be called to provide training to others in GAIL institute- the appellant. 7.2 We have considered the submissions. 7.3 The definition of 'input service' under Rule 2(l) of the CENVAT Credit Rules, 2004 [CCR] is as follows: (l) 'input service' means any service, - (i) used by a provider of output service for providing an output service; or (ii) used by a manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products and clearance of final products upto the place of removal, and includes services used in relation to modernisation, renovation or repairs of a factory, premises of provider of output service or an office relating to such factory or premises, advertisement or sales promotion, market research, storage upto the place of removal, procurement of inputs, accounting, auditing, financing, recruitment and quality control, coaching and training, computer networking, credit rating, share registry, security, business exhibition, legal services, inward transportation of inputs or capital goods and outward transportation upto the pl....
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....ching and training of employees of GAIL do not become input services of the assessee. The submission of the appellant that the entire legal entity should be considered to determine eligibility of CENVAT credit and that the appellant was not distinct from GAIL deserves to be rejected. Unlike income tax, where the tax is assessed on the corporate entity combining all the incomes and expenses across all its units across the country, in Service Tax, every individual service providing entity is an assessee by itself. It has to pay service tax on the output services which it provides and it has no responsibility to pay service tax if some other unit of the same company had provided services. Similarly, every unit is entitled to take CENVAT credit on the inputs and input services which it uses in providing output services but it cannot take CENVAT credit of some input services used by some other unit of the same corporate entity. Simply because the bills are paid by the appellant, the training service will not become an input service for its output service which is commercial coaching and training. For all these reasons, the submissions by the appellant deserve to be rejected. Revenue was....
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....ce service (Rs.40,687/-) - According to the appellant, these services were availed to insure office building and equipment in connection with the training programmes which it had provided and therefore it is an input service for its output service viz., commercial coaching, and training service. No reason has been given in the SCN or in the impugned order to deny CENVAT credit on this service. Considering the nature of the service provided by the appellant, the appellant is entitled to CENVAT credit of the service tax paid on insurance service. 7.10 Manpower recruitment service (Rs.18,00,277/-) - According to the appellant, it had procured manpower on contract basis to run its day to day business. Therefore, it is an input service for its output service viz., commercial coaching, and training service. No reason has been given in the SCN or in the impugned order to deny CENVAT credit on this service. Considering the nature of the service provided by the appellant, the appellant would be entitled to CENVAT credit of the service tax paid on manpower recruitment service. 7.11 Photocopying service (Rs.73,094/-) According to the appellant, it had rented a photocopy machine to meet ....
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....,898/-) According to the appellant, it had hired the caterer to provide food to trainees and faculty during training. Therefore, it is an input service for its output service viz., commercial coaching, and training service. No reason has been given in the SCN or in the impugned order to deny CENVAT credit on this service. Considering the nature of the service provided by the appellant, the appellant is entitled to CENVAT credit of the service tax paid on catering service. 7.17 Hiring of vehicles service (Rs.72,479/-) - According to the appellant, the vehicles were hired for conveyance of trainees and the faculty. Therefore, it is an input service for its output service viz., commercial coaching, and training service. No reason has been given in the SCN or in the impugned order to deny CENVAT credit on this service. Considering the nature of the service provided by the appellant, the appellant is entitled to CENVAT credit of the service tax paid on this service. 8. The next question is if extended period of limitation was correctly invoked in the present case. As per section 73 of the Finance Act, demand of service tax invoking extended period of limitation can be raised if th....