TMI Blog2015 (9) TMI 1090X X X X Extracts X X X X X X X X Extracts X X X X ..... Assistant Commissioner did not exceed his powers in compiling the show-cause notice denying the CENVAT credit while considering the rebate claim. - Therefore the action by the Assistant Commissioner cannot be sustained. Nevertheless I also find that it cannot be said that these services have no nexus. It was submitted that the hotel bills related to the training of the employees which is definitely an input service covered in the definition. As regards air travel, there are several decisions taking a stand that service tax credit in respect of air travel of the employees for the business purpose is admissible as credit. As regards employees insurance, Hon'ble High Court of Karnataka in the case of CCE Vs. Stanzen Toyotetsu Ltd. [2011 (4 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of CENVAT Credit Rules. 2. Learned Chartered Accountant on behalf of the appellants submitted that Notification No.11/2005-ST under which rebate claim was made has no condition requiring the verification of correctness of CENVAT credit availed. However in the show-cause notice, the Assistant Commissioner had proposed to deny the CENVAT credit on various services on the ground of nexus. He submits that in this case, the Assistant Commissioner had exceeded his power in issuing show-cause notice since total amount of CENVAT credit denied was more than ₹ 5 lakhs which is the monetary limit imposed as far as the adjudication by the Assistant Commissioner / Deputy Commissioner is concerned. Therefore he submits that it was not proper to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Toyotetsu Ltd. [2011 (23) STR 444 Kar.] has held that credit is admissible. Further repair of vehicles also cannot be said to be unrelated to the output service. Therefore on merit also, I find that CENVAT credit cannot be said to be inadmissible and therefore the benefit has to be given to the appellants. 3. Further it was also submitted that exercise of correctness of CENVAT credit availed was not at all required as regards the provisions of Notification No.11/2005-ST. What is required to be verified while sanctioning rebate claim under Notification No.11/2005 is whether service has been exported or not and whether consideration has been received for the exported service and whether the tax has been paid on the service exported or not. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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