Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2016 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (5) TMI 906 - AT - Service TaxAvailment of Cenvat credit - Telephone/mobile phone, courier services and construction and repair services (pertaining to staff quarters) - period involved is April 2011 to December 2012 - Appellant contended that all the services availed by them for olr inside the factory premises, threfore, comes under the definition of input service under Rule 2(l) of the Cenvat Credit Rules 2004 - Held that:- with regard to the credit availed in respect of Telephone/mobile phone and courier services, the judgement in the case of Servall Engineering Works Pvt Ltd vs. CCE [2016 (5) TMI 889 - CESTAT CHENNAI] cited supra is squarely applicable to the appellant's case, wherein it was held that the services related to cell phone , courier agency, it is quite possible as to the use of those services for the purpose of manufacturing and commercial activity of the appellant and therefore, Cenvat credit claimed in respect of service tax paid thereon was allowed.Therefore, by following the same, the credit availed on the Telephone/mobile phone and courier services are allowed. With respect to the repair and maintenance service pertaining to the appellants staff quarters, it is found that the services are in the nature of welfare activity and from 01.04.2011 onwards the credit availed on such welfare activities are not eligible for the credit under Rule 2(l) of the CCR 2004. Since the credit is held to be eligible on Telephone/mobile phone and courier services, penalty is set aside and with regard to the repair and maintenance service in view of the fact that the issue involved is interpretative in nature and the appellants were under the bonafide belief, penalty is set aside. - Appeal disposed of
|