TaxTMI 
TaxTMI 
2025 (12) TMI 1610
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....s engaged in the business of providing Information Technology (IT) and IT enabled services in various technology areas, Management Consultancy and other services which are taxable under the Finance Act, 1994. For payment service tax and for statutory compliance, the appellants have registered themselves with jurisdictional service tax authorities and have obtained service tax registration certificate No. AABCP6219NST001. The appellants also avail CENVAT credit of service tax paid on input services as per the provisions of CENVAT Credit Rules, 2004 (for short, referred to as 'CCR'). 2.2 During the course of scrutiny of ST-3 returns filed by the appellants, the Department had enquired about the appellant's availing of Cenvat Credit. On scrutiny of the documents and the books of accounts for the period 2015- 2016 to 2017-2018, the Department had interpreted that the appellants have taken CENVAT credit of service tax on some of the input services in an irregular manner as these are not covered within the scope of the term 'input service' under Rule 2(l) of CCR of 2004 and therefore the appellants are not eligible for such credits. Thus, the department had concluded that ....
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....artly the CENVAT credit in respect of eligible input services, as determined by him. The matter was appealed against before the Tribunal in Service Tax Appeal No.87513/2018. Upon hearing both the sides, and on perusal of the factual details of the case, the Tribunal in its Final Order No. A/85863/2023 dated 25.04.2023 had observed that in order to find out the eligibility of a particular service as 'input service' under definition contained in Rule 2 (l) ibid, the nature and the purpose of use of the service in the ultimate provision of the output service is required to be examined inasmuch as the parameters of eligibility of such credit differs from case to case basis and standard practice cannot be adopted uniformly in judging such eligibility to the CENVAT benefit. Therefore, the Tribunal had allowed the appeal filed by the self-same appellants in that case, by way of remand to the original authority for proper and effective adjudication of the matter, in line with the observations made therein. Further, the said order of the Tribunal also directed that the original authority to properly examine the actual use/utilization of the disputed services in the provision of the output s....
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.... (iv) Aveco Technologies Pvt. Ltd. Vs Commissioner of Customs, Hyderabad, 2018 (362) ELT 624 (Tri. - Hyd.) Affirmed by Supreme Court-2018 (362) ELT A164 (SC) (v) Coastal Housing Vs Commr. of C. Ex. & Central Tax, Mangalore Commissionerate, 2021 (53) GSTL 39(Tri.-Bang.) (vi) Shalimar Paints Ltd. Vs Commissioner of Central Excise, Kolkata-II, 2017 (3) GSTL 270 (Tri. Kolkata) (vii) HCL Technologies Ltd. Vs Commissioner of Cus., EX, & ST Nodia, 2017 (48) STR 129 (Tri. All) (viii) Integra Software Service Pvt. Ltd. Vs Commr. of C. Ex, Pondicherry., 2017 (3) GSTL 356 (Tri.- Chennai) (ix) Xilinx India Technology Services (P) Ltd. Vs CCE & ST, Hyderabad-IV, 2016 (44) STR 129 (Tri.-Hyd.) (x) Integra Software Service Pvt. Ltd. Vs Commr. of C. Ex., Puducherry, 2017 (48) STR 137 (Tri.-Chennai) (xi) Order-in-Original No. 73-79/MRM/COMMR/ME/2023-24 dated 25.09.2023 4. On the other hand, learned Authorised Representative for Revenue reiterated the findings of the Commissioner in the impugned order, and submitted that in order to claim input credit of CENVAT, the input services is required to be covered under the de....
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....or (iii) any service used by a manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products and clearance of final products up to the place of removal,;..... Common for both periods referred above 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 up to the place of removal; but excludes (A) service portion in the execution of a works contract and construction services including service listed under clause (b) of section 66E of the Finance Act (hereinafter referred as specified services) in so far as they are used for- (a) construction or execution of works contract of a building or a civil str....
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....apital goods and outward transportation up to the place of removal as these are consumed directly or indirectly in provision of output services. (iii) The third category of input services are covered under the 'exclusion' part, as those which are specifically excluded from the scope of the definition of input service. Therefore, in order to decide about the eligibility of an input service for taking CENVAT Credit, it has to satisfy that the same can be covered under either 'means' part or 'inclusion' part and the same should not be covered under the 'exclusion' part. 8.1 Learned Adjudicating Authority had broadly grouped the disputed services under various categories for his examination and in 42 such categories, he allowed the input CENVAT credit, while in 9 categories of services he had denied the CENVAT credit on the basis of his findings recorded in the impugned order. I have also examined these aspects and in respect of the each of the disputed services, I would herein deal with the issue of its eligibility in the following paragraphs. 8.2 In respect of 'construction services' it has been submitted by the learned Advocate for the appellants that t....
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.......I find that to decide whether service is an input service or otherwise, it cannot be decided only by the nomenclature of the service. It is necessary to ascertain what is the output service and whether the service in question is required for providing the output service. In the present case, the appellant is providing the BPO services. In the BPO services the major involvement is manpower who are required to perform their duties on 24x7 basis when the manpower work in odd times during the 24 hours it adversely affects the health of the employee which directly affects the performance of the services. In the BPO companies the health and fitness of the employees is very essential factor in order to run the function of a BPO company. Therefore, health and fitness services availed by the company for their employee is a necessity for providing the better quality of output service. It is to be kept in the mind that business organization is not meant for an entertainment of the employees but the ultimate objective is to achieve optimum performance by the employee. For that purpose health and fitness of the employees are very necessary." 8.4 In respect of 'restaurant services, s....