TaxTMI 
TaxTMI 
2026 (7) TMI 1187
X X X X Extracts X X X X
X X X X Extracts X X X X
....e 2017) is eligible to claim such credit against Aircraft running expenses and hiring charges of executive Jet. 2. The brief facts are the Respondent is involved in sourcing of jewelry through conversion of Bullion via gold jewellery makers and distribute to retail show rooms across India under the control of various Regional Offices of the Respondent across India. The Respondent is also manufacturing gold jewelry and provider of output services like business auxiliary services, renting of immovable property service and having service tax registration. During Audit for the period April 2015 to June 2017, it is observed that the Respondent had availed input service credit on various services and which are ineligible as per the provi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ding charges, airworthiness management service, helicopter landing services, hire charges of ground supporting equipment, royalty fee paid to Airport authority of India, Navigation charges and services availed for training of pilots and cabin crew. They have availed CENVAT credit on the hire charges of a nine seater executive jet, also. Learned AR further submits that the services by way of maintenance and repairs of motor vehicles are excluded from the definition of input service as defined in Rule 2(l) of Cenvat Credit Rules, 2004 in so far as they relate to motor vehicles which are not capital goods. Motor vehicles falling under chapter heading 8702, 8703, 8704 and 8711 (used for transport of persons and goods) are specifically excluded ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....tion to evade payment of central excise duty. Therefore, the findings of Commissioner (A) are not sustainable and demand confirmed by invoking extended period of limitation and penalty imposed by Adjudication Authority are sustainable. 5. Learned Counsel appearing for the Respondent draws our attention to the finding in the impugned order and submits that while allowing the appeal, first Appellate authority as regards the aircraft running expenses and the hiring expenses of executive jets incurred by the Respondent held that; "I find that there is no restriction for the availment of cenvat credit on such services availed by the appellant in terms of the definition of input service as these services were used directly or indirectly ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ed Counsel further draws our attention to decision of the Tribunal in the matter of Sanmar Foundries Ltd. Vs. Commissioner of Central excise, reported in 2016(43) STR 362 (Tri- Chennai), wherein it is held that Cenvat Credit- Input service credit- Management, maintenance and repair service of helicopter- Helicopter was used for transportation of directors and chairman of the company- No requirement under Rule 2(l) of the Cenvat Credit Rules, 2004 which defines input service that the usage has to be in relation to a particular unit- Input definition was very wide and the inclusive definition covered activities relating to business which has not been taken into consideration- Credit not to be denied. Also, in the case of Lakshmi Machine Works....
X X X X Extracts X X X X
X X X X Extracts X X X X
....f M/s. Purvankara Ltd. Vs. CC, Bangalore in Service Tax Appeal No. 20024/2019, this Tribunal as per the Final Order No. 21796-21800/2024 dated 03.10.2024 held that the aviation services are availed for official travel and Revenue has not adduced any evidence to show that the services used are for any other purpose other than official /business purpose. 8. Heard both sides and perused the records. 9. We find that the first Appellate authority held that there is no restriction for the availment of cenvat credit on impugned services availed by the Respondent in terms of the definition of input service as these services were used directly or indirectly and in or in relation to the manufacture of the final product. Further....