2009 (7) TMI 110 - AT - Service Tax

Cenvat Credit Input Services - .xerox machine maintenance and repairs service air travel agent service tourist taxi service and photography service held that held that - in respect of xerox machine maintenance and repairs the appellant submits that this machine was used principally for designing and drawing without which the final product could not be manufactured - CENVAT credit of the service tax paid on the maintenance and repairs of the xerox machine should be allowed In respect of air travel agent assessee failed to produce documentary evidence in support of their claim that were actually undertaken to promote the marketing of the final product credit on air travel agent services denied regarding photograph service - Any strategy involving the taking of photographs of the process of manufacture or of the manufactured goods and supplying such photographs to prospective buyers is unknown to the trade - the appellant is not eligible for CENVAT credit on photography service

Summary

Issues:
Admissibility of CENVAT credit for xerox machine maintenance and repairs service, air travel agent service, tourist taxi service, and photography service.

Xerox Machine Maintenance and Repairs Service:
The appellant argued that the xerox machine was primarily used for designing and drawing, essential for manufacturing the final product. They contended that the machine's maintenance and repairs should qualify for CENVAT credit, irrespective of occasional use for administrative purposes. The Tribunal noted that this argument was raised in the reply to the show-cause notice and remained unchallenged. Consequently, the Tribunal allowed CENVAT credit for xerox machine maintenance and repairs.

Air Travel Agent Service and Tourist Taxi Service:
The appellant claimed that these services were utilized for business-related travel, particularly for marketing tours and meetings. However, the Tribunal emphasized that the actual promotion of the final product through these tours needed to be substantiated with documentary evidence, which the appellant failed to provide. The lower appellate authority's decision to disallow CENVAT credit for these services was upheld.

Photography Service:
Regarding photography service, the appellant argued that photographs of manufacturing activities and goods were used for marketing purposes, falling under the definition of "input services." However, the Tribunal found these arguments unconvincing, deeming the strategy unconventional and unknown in the trade. Consequently, the lower appellate authority's decision to deny CENVAT credit for photography service was upheld.

Overall Decision:
The Tribunal dismissed the appeal except for xerox machine maintenance and repairs, where CENVAT credit was allowed. The lower appellate authority's decision was upheld for air travel agent service, tourist taxi service, and photography service. The impugned order was modified to reflect the allowance of CENVAT credit solely for xerox machine maintenance and repairs.