TaxTMI 
TaxTMI 
2026 (5) TMI 1593
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....T credit so availed. After due process the Ld. Commissioner out of the total demand of Rs.69,77,323/- allowed CENVAT credit of Rs.19,83,852/- on certain services and disallowed the balance CENVAT credit of Rs.49,93,471/-. Hence this appeal. 3. The Ld. Advocate Shri Joseph Prabhakar appeared for the appellant and Ld. Authorized Representative Shri M. Selvakumar appeared for the respondent. Submissions on behalf of the Appellant 3.1 Shri Joseph Prabhakar the Ld. Advocate for the appellant submitted as follows: A. The entire demand is barred by limitation. The Show Cause Notice was dated 28.5.2015. For the relevant period, the normal period of limitation under Section 73(1) of the Finance Act, 1994 was one year for the period from April 2010 to 27.05.2012 and eighteen months for the period from 28.05.2012 to 31.03.2013. B. The dispute concerns eligibility of credit on multiple categories of services under Rule 2(l) of the CENVAT Credit Rules, 2004, including services spanning the pre- and post-01.04.2011 amendment period. C. The issue is plainly interpretational, and in such circumstances suppression or wilful misstatement cannot be alleged merely b....
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....ecause the transaction is described as a demerger. The distinction drawn in the impugned order between merger and demerger is artificial and unsustainable. In any event, the adjudicating authority failed to address the appellant's specific objection on quantification, namely that the actual credit relatable to this head was Rs.10,31,609/- and not Rs.17,93,297/- as proposed. I. Credit on outdoor catering / Sodexo / vending machine services, and on employee insurance and travel/project insurance, is admissible at least to the extent such services were availed prior to 01.04.2011 or were directly related to business requirements. The appellant has already reversed Rs.1,428/- relating to employee health check-up. The balance pertains substantially to official travel insurance and project-specific insurance, which are not personal consumption services but business-related expenditure. J. Credit on security and housekeeping services has been wrongly disallowed on the assumption that all invoices pertain to guest house services. The appellant specifically explained that the same service providers rendered services both for office premises and guest house, and the quantif....
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....definition explicitly excludes certain services and the phrase "activities relating to Business" has been deleted from definition of input service with effect from 01.04.2011. D. Services which are used primarily for personal use or consumption of any employee has also been disallowed from 01.04.2011. The Ld. A.R. stated that the submissions made by the appellant do not satisfy the provisions of Rule 2(l) and the appeal may hence be rejected. Discussion & Analysis 4. I have heard the rival parties and perused the appeals. I find that the dispute pertains to the following input services: a. Car booking software b. Servicing of company owned car c. Chartered aircraft d. Civil and interior work for new office building e. Demerger of business of the company f. Outdoor catering / Sodexo Meal pass / Coffee Vending Machine g. Employees insurance and medical expenses h. Security and housekeeping for guest house i. Services relating to immovable property j. Club membership k. Rent-a-cab l. Marine insurance relating to exports 5. The appellant has made a preliminar....
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....2011 the definition of 'input service' was amended, primarily removing the phrase 'activities relating to business' and excluding certain specific services including services used primarily for personal use or consumption of any employee, from its definition. 7. The Principal Bench of this Tribunal at New Delhi had an occasion to examine the issue, post the amendment of the definition of 'input service' in the case of Godawari Power & Ispat Limited Vs Commissioner, Customs, Central Excise, FINAL ORDER NO. 51519/2023, Dated: 08.11.2023. It held: "14. It would be seen from the aforesaid definition of "input service‟ in rule 2(l) of the Rules that while the "means‟ part of the definition has continued to remain the same pre amendment or post amendment, but the "includes‟ part and the "excludes‟ part of the definition of "input service‟ have underdone changes. Though "services used in relation to setting up‟ of a factory was included in the inclusive part of the definition of "input services‟ prior to 01.04.2011 but it was deleted w.e.f. 01.04.2011. The "excludes‟ part in the definition of "input service‟ was added w.e.f....