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2018 (11) TMI 1718 - AT - Service TaxCENVAT credit - input service - repair and maintenance of staff quarters - expenses incurred towards staff welfare services - travelling expenses - membership fees etc. - denial on account of nexus - HELD THAT:- Under the un-amended definition of input service (effective upto 31.03.2011), the phrase “activities relating to business” was specifically finding place for consideration of the service as input service - The fact is not under dispute that for accomplishing the purpose of the appellant’s business activities, the disputed services were used and utilized by it. Since the value of taxable service along with service tax paid there-on was reflected as business expenses in the Books of Account, the disputed services should be considered as input service in terms of Rule 2(l) of the Rules for the period upto 31.03.2011. Under the amended definition of Rule 2 (l) ibid(with effect from 01.04.2011), the assessee is permitted to avail credit on any service used for providing the output service, excepting the excluded category of services mentioned in the definition of input service - The description of disputed services provided in the impugned order, do not fall under the excluded category provided under Rule 2(l) of the Rules. Therefore, denial of Cenvat benefit on the disputed services will not be proper and justified on the ground that those services have no nexus with the output service provided by the appellant. Since the original authority had specifically recorded the findings that the appellant had not produced any documentary evidences to show nexus as well as the eligibility of Cenvat benefit on the disputed services, the matter should be remanded to the original authority for verification of the documentary evidences to be produced by the appellant to establish that the disputed services are in fact, conforming to the definition of the input services and were used / utilized for providing the output service. Appeal allowed by way of remand.
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