TMI Blog2021 (11) TMI 11X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in the inclusive part of the definition, would qualify themselves as an input service, under Rule 2 (l) of CCR. Air Travel Agency Service having been used by the officials of the manufacturer for traveling to different places for creating the demand for the products manufactured by them is also a service used in relation to procurement of inputs, sales promotion/ marketing activities (which is a specified activity in the inclusive part of the definition) thus it also qualify itself as an input service, even after 01.04.2011. There is no denial to the fact that the air-travel agency service, in the present case has been used for business purpose i.e. for the purpose of promotion of sales, auditing, review of various business processes, inspection of vender premises and other business purposes. None of these services were used for personal use or consumption by any employee. Accordingly, they were all for the purpose of the appellant company, its corporate office and all other units - in respect of air-travel services itself in appellant s own case the Department has allowed the credit. There are no justification in the order under challenge while denying the said eligibi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arely covered under the definition of input services as given in Rule, 2 (l) of CCR, 2004. It is submitted that the said services used for conveyance of appellant s officials to travel to different places to create the demand for the product manufactured and therefore, is the service which is indirectly related to the manufacture of final product. It is further submitted that the fact of availing Cenvat credit on air-travel agency service is known to the Department as the same is reflected in half yearly ISD returns and also in appellant s ISD Invoices as such, there is no suppression of any material fact of taking such credit by the appellant. The confirmation of demand as well as the imposition of penalty is therefore, alleged to be wrong. Commissioner (Appeals) is mentioned to have not considered the submissions of the appellants and also the case law quoted by them. The order under challenge is, accordingly, prayed to be set aside and appeal is prayed to be allowed. 4. To rebut these submissions, it is mentioned on behalf of the Department that the definition of input services has undergone change w.e.f. 1st April, 2011, in accordance whereof the prime requisite for any serv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion up to the place of removal; but excludes, - (A) service portion in the execution of a works contract and construction services including service listed under clause (b) of section 66E of the Finance Act (hereinafter referred as specified services) in so far as they are used for (a) construction or execution of works contract of a building or a civil structure or a part thereof; or (b) laying of foundation or making of structures for support of capital goods, except for the provision of one or more of the specified services; or (B) Services provided by way of renting of a motor vehicle, in so far as they relate to a motor vehicle which is not a capital goods; or (BA) Service of general insurance business, servicing, repair and maintenance , in so far as they relate to a motor vehicle which is not a capital goods, except when used by (a) a manufacturer of a motor vehicle in respect of a motor vehicle manufactured by such person ;or (b) an insurance company in respect of a motor vehicle insured or reinsured by such person; or (C) such as those provided in relation to outdoor catering, beauty treatment, health services, cosm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... so expressly provided certain activities/services used for specified purposes cannot treated as an input service for the purpose of CENVAT Credit Rules, 2004, as mentioned in the exclusion portion of the said Rule 2 (l) of CCR. The subject services viz., Air Travel Agency Service and Convention Service are not forming a part of the exclusion clause of the definition under Rule 2 (l) of CCR. For this reason also, I opine, that Air Travel Service being not exclusively excluded but being covered under inclusive part of the definition, is the service eligible for Cenvat Credit. 10. The aforesaid definition also clarifies that though the word business activity was removed from the definition of input services at the time of amendment but still they were made eligible for Cenvat Credit of Service Tax paid on the subject services as they were used in relation to sales promotion, market research, accounting, financing, recruitment, quality control, coaching Training and business exhibitions, as all these services are specifically mentioned in the exclusive part of the definition. Further, the word include as is used in the definition means that the definition was not exhausted b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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