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2021 (4) TMI 1285 - CESTAT MUMBAICENVAT Credit - laying of pipeline of inward transmission of CNG, service availed for inspection at a new sites - credit on input service mistakenly taken at Zone I that pertains to Zone II - services for medical check-up in health camp arranged for auto and taxi drivers using CNG under CSR Scheme - HELD THAT:- The issue of laying of pipeline for inward transmission of CNG has been settled by this Tribunal in the appellant’s own case pertaining to a different period vide decision dated 14-4-2019 of CESTAT Mumbai. The findings is concurred with and in carrying forward the judicial precedent, the appellant’s claim for availment of credit on service tax paid for laying of pipelines used for inward transmission of inputs-natural gas is, therefore, accepted and the benefit of availment of such credit is hereby extended to the appellant. Credit of input services taken on Zone I and II - HELD THAT:- It is observed that appellant had registered itself under Centralised Registration Scheme and these zones were subsequently demarcated as C.B.E. & C. Circular No. 875/13/2008-CX., dated 16-10-2008 clearly stipulates that separate registration is required under each jurisdiction of the Chief Commissioner. This being the factual and legal position, appellant won’t have been allowed such credit had it not transferred its credit in the book of accounts from one zone to another. Since it had done the changes that is required for availing credit in the other zone, it should not have been denied the credits for narrow technical consideration as it is in no way stand as a stumbling block in extending such benefit. Hence the credit on input services pertaining to Zone II is allowed to the appellant who had already made necessary changes of transfer of such credits between the zones. The dispute concerning inspection at new site and denial of Cenvat credit on input services availed for such inspection needs discussion on two counts. Firstly, appellant contended that it is statutory/mandatory requirement for them to have inspection of the geographical area of the city/locality where compressed natural gas distribution is to be effected - The second reason on which denial is justified by the Learned DR is that the definition of Cenvat credit available in Rule 2(l) of Cenvat Credit Rules, 2004 clearly excludes the word “setting up” with effect from 1-4-2014 and therefore no interference in the order passed by the Commissioner (Appeals) is required on this issue since such feasibility report was a part of setting up of gas distribution network. The only other denial of credit left is concerning services of free medical check-up of the drivers etc. on which appellant claimed Cenvat credit on the ground of meeting corporate social responsibility but there is nothing available on record to show that such services are freely extended to all CNG Drivers irrespective of the fact that they were consuming CNG from the appellant services station or elsewhere - the finding of the Learned Commissioner (Appeals) is concurred with, that the appellant is not entitled to get benefits of Cenvat credit on services availed for providing free medical check-up. The order of Commissioner (Appeals) is modified to the extent of allowing Cenvat credit on these three components namely tax paid for laying of pipeline of inward transmission of CNG, service availed for inspection at a new sites, credit on input service mistakenly taken at Zone I that pertains to Zone II - Appeal allowed in part.
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