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2023 (9) TMI 642 - CESTAT CHANDIGARH
CENVAT Credit - denial on the ground of lack of nexus of input service with Manufacturing Activity - Commercial and Industrial Construction Service - Rent-a-Cab Service - Outdoor Catering Services - Real Estate Agent Service.
Commercial and Industrial Construction Service - HELD THAT:- Hon’ble Punjab & Haryana High Court in the case of COMMISSIONER CENTRAL EXCISE COMMISSIONERATE, DELHI-III VERSUS M/S BELLSONICA AUTO COMPONENTS INDIA P. LTD. [2015 (7) TMI 930 - PUNJAB & HARYANA HIGH COURT] has held that input services used in relation to setting up, modernization, renovation or repairs of a factory will be allowed as credit, even if they are assumed as not an activity relating to business as long as they are associated directly or indirectly in relation to manufacture of final products and transportation of final products upto the place of removal - credit allowed.
Rent-a-Cab Service - HELD THAT:- Hon’ble High Court of Punjab & Haryana in the case of COMMISSIONER OF CENTRAL EXCISE DELHI-III VERSUS M/S MARUTI SUZUKI INDIA LTD. [2016 (11) TMI 237 - PUNJAB AND HARYANA HIGH COURT] observed that Regarding Rent-a-Cab services used by the executives of the respondent for the purpose of travelling required for business meetings, visits to the dealerships, visits to the vendor sites, dealers meet, business promotion activities, vehicles launch, conferences etc. is a an expenditure in relation to business being incurred by the respondent in order to promote the sales and for efficient running of the business for which they are entitled to avail CENVAT credit - Credit allowed.
Outdoor Catering Services - HELD THAT:- Hon’ble High Court of Bombay in the case of CCE, NAGPUR VERSUS ULTRATECH CEMENT LTD., [2010 (10) TMI 13 - BOMBAY HIGH COURT] held that the definition of input service read as a whole makes it clear that the said definition not only covers services, which are used directly or indirectly in or in relation to the manufacture of final product, but also includes other services, which have direct nexus or which are integrally connected with the business of manufacturing the final product. In the facts of the present case, use of the outdoor catering services is integrally connected with the business of manufacturing cement and therefore, credit of service tax paid on outdoor catering services would be allowable - credit allowed.
Real Estate Agent Service - HELD THAT:- Coordinate Bench at Mumbai in the case of AXIS BANK LTD. VERSUS COMMISSIONER OF SERVICE TAX, MUMBAI AND VICE-VERSA [2017 (3) TMI 874 - CESTAT MUMBAI] held that Cenvat credit of service tax paid on the services of real estate agent who help in finding residential accommodation for their employees is permitted, as also the decision of the Tribunal in the case of TOYOTA KIRLOSKAR MOTORS PVT. LTD. VERSUS COMMISSIONER OF CENTRAL EXCISE, LTU, BANGALORE [2016 (9) TMI 133 - CESTAT BANGALORE]. In view of this, Cenvat credit availed by appellant is correct.
In view of the wider scope given in the definition under Section 2(l) of CENVAT Credit Rules, 2004, the services of which the credit was availed by the appellants, merit to be classified as Input Services used in or in relation to the manufacture and sale of final products or in relation to the business activity of the appellants - Credit cannot be denied - the impugned order is not legally sustainable - appeal allowed.