AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2026 (5) TMI 5
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 4. General insurance 1,825 5. Rent (on cafeteria) 3,81,100 6. Rent-a-cab service 28,033 7. Support Services to business or commerce 2,538 Total 1,15,687 4,30,436 3. The Ld. Counsel appearing on behalf of the appellant submits that all these 'input services' were received by them prior to 01.04.2011, when the definition of 'input services' include "activities relating to business". It is pointed out that the definition of 'input services' as defined under Rule 2(1) of the CENVAT Credit Rules was narrowed down by deleting this phrase after 01.04.2011 only. The appellant submits that for the period prior to April 2011, the definition of input service under Rule 2(l) of the CENVAT Credit Rules, was inclusive in nature and wide enough to cover all the disputed services within its ambit. Accordingly, she contends that all these services are 'input services' used in relation to providing of their output service and hence they have rightly availed CENVAT Credit of the Service Tax paid on....
X X X X Extracts X X X X
X X X X Extracts X X X X
....(I) Pvt. Ltd. [2019 (366) E.L.T. 340 (Tri. - Chennai)] 2. Club or association service The Appellant had obtained subscription in various clubs for the purpose of promoting the business and organising business meetings. Commissioner of Central Excise, Udaipur vs. Manglam Cement Ltd. [2018 (9) G.S.T.L. 17 (Raj.)] maintained in 2018 (16) G.S.T.L. J168 (S.C.) [06-08-2018] Hero Motor Corp. Ltd. vs. Commissioner of Central Excise, Delhi-III [2024 (11) TMI 607 - CESTAT Chandigarh] Xilinx India Technology Services (P) Ltd. vS. Commissioner of Central Excise & Service Tax, Hyderabad- IV [2016 (44) S.T.R. 129 (Tri. - Hyd.)] 3. General insurance services This services are used in relation to insure motor car owned by the Appellant which are used for transport of employees. Milestone Preservatives Pvt. Ltd. vs. Commissioner of Central Excise & Service Tax, Vadodara-I [(2023) 3 Centax 233 (Tri. - Ahmd)] Birla Corporation Limited vs. Commissioner of Central Excise, Bhopal [2016 (46) S.T.R. 430 (Tri. - Del.)] 4. Rent (on cafeteria) The Appellant provides canteen facilities to its employees ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....at all these services namely, outdoor catering service, club or association service, bus/car hire charges, general insurance, rent (on cafeteria), rent-a-cab service, support services to business or commerce do not qualify as `input services' used in providing output services of the appellant. Hence, the Ld. Authorized Representative of the Revenue contends that the Ld. Commissioner (Appeals) has rightly rejected the refund claims filed by the appellant on these input services vide the impugned order. 5. Heard both sides and perused the appeal documents as well as the decisions relied upon by both sides in support of their contentions. 6. I find that the appellant has availed CENVAT Credit of Service Tax paid on services such as outdoor catering service, club or association service, bus/car hire charges, general insurance, rent (on cafeteria), rent-a-cab service, support services to business or commerce. The appellants were of the view that these services fall within the ambit of definition of 'input services' as it existed prior to 01.04.2011. 6.1. The primary contention of the appellant is that the Department has not questioned the entitlement of CENVAT Credi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nd the output service exported by the appellant. Further, in Revenue's appeal, it has been contended that certain disputed services are not conforming to the definition of input service provided under Rule 2(1) ibid. Insofar as taking of irregular Cenvat credit is concerned, Rule 14 ibid clearly mandates that in case of irregular availment of credit or its utilisation, such credit can be recovered from the assessee and for effecting the recoveries, the provisions of Section 11A of the Central Excise Act, 1944/Section 73 of the Finance Act, 1994 shall apply mutatis mutandis. It is an admitted fact on record that the department has not invoked the provisions of Rule 14 ibid for effecting recovery of the alleged irregular Cenvat credit availed by the assessee-appellant. Thus, under such circumstances, it can be said that taking of Cenvat credit on the disputed services by the appellant is in conformity with the Cenvat statute. Rule 5 ibid nowhere specifies that Cenvat credit can be denied on the ground of irregular availment or utilisation of the same. Thus, in absence of specific provisions contained in the statute, denial of the refund benefit provided under Rule 5 ibid, in our ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....1.04.2011. 1. Outdoor Catering Service 7.1. With regard to the eligibility of CENVAT Credit in respect of Outdoor Catering Service, I find that the appellant had availed the services of caterers for providing food to their employees working over weekends, outside office premises and during business meetings, etc. Prior to 01.04.2011, the definition of "input service" under Rule 2(1) of the CENVAT Credit Rules, 2004 was wide enough to cover all such services having nexus with the business activities of the assessee. The issue stands settled in the case of Commissioner of GST & Central Excise, Chennai v. Flextronics Technologies (I) Pvt. Ltd. [2019 (366) E.L.T. 340 (Tri .- Chennai)], wherein it was held as under: "9. The next issue is with regard to the credit allowed on services mainly outdoor catering services, Rent-a-cab services, the period involved is prior to 1-4-2011 and the definition of 'input services' during the relevant period had a wide ambit as it included the words "activities relating to business". In various decisions, the Tribunal as well as the Courts have held that the said services are eligible for credit if it is established from records t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ere availed for insuring motor cars owned by the appellant, which were used for transportation of employees and in connection with business activities. Such insurance services have a direct nexus with the business of the appellant and are therefore covered under the inclusive definition of input service. 7.3.1. The issue stands settled in the case of Milestone Preservatives Pvt. Ltd. v. Commissioner of Central Excise & Service Tax, Vadodara-I [(2023) 3 Centax 233 (Tri .- Ahmd.)], wherein in respect of similar services, the Tribunal at Hyderabad has observed as follows: - "5. As regards the other services such as group Medi-claim Insurance, Group personal accident insurance, insurance, motor car/vehicle insurance etc., I find that these are the services as mandated as per the factory Act for the safety of employees. Therefore, this cannot be said that the services were used for personal use. Every industry under statutory norms required to take group Medi-claim Insurance, Group personal accident insurance, insurance, motor car/vehicle insurance etc. from the insurance companies for which the payment of premium is paid by the assessee and the same is accounted in their bo....
X X X X Extracts X X X X
X X X X Extracts X X X X
....vices of the appellant. In that circumstances, Renting of Immovable Property for Parking Space is entitled to Cenvat credit." 7.4.1. A similar view was expressed in Commissioner of Service Tax, Chennai v. Verizon Data Services India Pvt. Ltd. [2015 (39) S.T.R. 522 (Tri .- Chennai)], wherein such services were held to be eligible input services. 7.4.2.Accordingly, the denial of CENVAT Credit on cafeteria rent is unsustainable. 5. Rent-a-Cab Service & Bus/Car Hire Charges 7.5. With regard to the eligibility of CENVAT Credit in respect of Rent-a-Cab Service and Bus/Car Hire Charges, I find that the said charges were for hiring cabs/vehicles for picking up employees from their residence and dropping them back. The said transportation facility was provided solely for employee transportation, which was necessary for the smooth functioning of the business and provision of output services. 7.5.1. The issue stands settled in the case of KLA Tencor Software India Pvt. Ltd. v. Commissioner of Service Tax, Chennai-III [2016 (45) S.T.R. 242 (Tri .- Chennai)], wherein it was held as under: "8. With regard to issue No. (ii), the learned Commissioner (Appeals) at Para 8 of ....