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TMI Blog2024 (12) TMI 1299X X X X Extracts X X X X X X X X Extracts X X X X ..... herefore proceedings were initiated against appellant. Adjudicating authority disallowed CENVAT credit and confirmed demand of Rs. 6,51,26,496/- along with interest and also imposed penalties under the provisions of Finance Act, 1994. Aggrieved by said order, present appeal is filed before this Tribunal. 3. During the hearing, Learned Counsel for the Appellant submitted that the entire inputs were used only for the purpose of output services and are eligible for the CENVAT credit. The Learned Counsel further submits that the issue is no more res integra, since as per the judgment/decisions of the Tribunal in large number of cases, the Appellant is eligible for claiming CENVAT credit on such services. 4. As regarding CENVAT credit claim against Passenger Boarding Bridge (classified under CETH 9801), Bridge Mount Converter (classified Under CETH 9801) etc. and light and lighting equipment, Learned Counsel for the Appellant submitted that benefit of credit is allowed for goods imported under 'Project Imports' under Customs Tariff Chapter heading 98.01, whether the goods fall under category of inputs or capital goods. The Learned Counsel further submitted that the issue is co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... heading 84 and 85 of Customs Tariff Act, 1975. Hence, the same qualify to be capital goods as per the definition of capital goods under Rule 2(a)(A)(viii) of CENVAT Credit Rules, 2004. As regarding finding that the goods form part of the civil structure and these items are either fitted to the ground or connected to the wall/structures and they become part of the building or civil structures, Learned Counsel submitted that such conditions for availing of CENVAT credit are neither brought out in the definitions of inputs or capital goods nor in the conditions specified in CENVAT Credit Rules, 2004 to allow the CENVAT credit. Learned Counsel relied the following decisions : i. M/s Dhanlaxmi Infrastructure Private limited v. CCE & ST, Surat - I 2020 (4) TMI 383 - CESTAT AHMEDABAD ii. M/s ATC Telecom Infrastructure Private Limited v. Commissioner, Service Tax, Delhi - II 2023 (2) TMI 895 - CESTAT NEW DELHI iii. M/s Sarita Handa Exports (P) Ltd. v. Commissioner of C. Ex., Gurgaon - II 2016 (44) S.T.R. 654 (Tri. - Chan.) iv. M/s JSW Steel Ltd. v. Commissioner of Central Excise, Customs and Service Tax- Belgaum 2021 (12) TMI 381 - CESTAT BANGALORE v. M/s Omax Auto Limited v. CCE ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cle Awards given in recognition of excellent work performed by their business partners, which has no nexus with the output service viz. Airport Service provided by the Appellant. In this regard, Learned Counsel submitted that Pinnacles awards are to recognize the excellence of work performed by business partners which include Airlines, Commercial Concessionaires, Operational concessionaries and authorities etc., These awards are for people from all departments including the stakeholders in order to encourage them and continue providing their support to the appellant so that the appellant's customers and passengers are well serviced. Expenses disputed here are in relation to consultation charges incurred for determining list of awardees for Pinnacle awards. Since these are purely business related and not incurred for personal consumption of employees of the appellant, service tax paid on such services would be eligible for Cenvat credit availment. Further, such events are essential to ensure that the appellant meets IATA standards, which is one of the requirements as per Concessionaire agreement entered between Ministry of Civil Aviation ('MoCA') and the appellant. Learned Counsel d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s events like 'Daily operation get together', 'Event of Fire Prevention Week', 'World Environment Day events 'Blood Donation Camp', 'Children Day Event' etc., does not satisfy the main clause under the definition of input service' under Rule 2(l) of Cenvat Credit Rules, 2004 and thus the credit availed is ineligible. In this regard, the Learned Counsel submitted that such services are incurred for various airlines and other promotional events, Cenvat credit is available as the same is for business purposes. The Learned Counsel relied on the following decisions:- i. Toyota Kirlsokar Motor Pvt Ltd Vs C E LTU, Bangalore 2011(24) S T R 645 (Kar) ii. Cadmach Machinery Co. (P) Ltd. v. Commr. of C. Ex., Ahmedabad 2013 (31) S.T.R. 33 (Tri. - Ahmd.) iii. M/s SKH Metals Ltd. v. Commissioner of Central Excise, Central Excise Raipur 2015 (5) TMI 1003 - CESTAT NEW DELHI iv. M/s Fidelity Business Services India Pvt. Ltd. Vs. Commissioner of Central Tax, Bengaluru East 11. As regards denial of CENVAT credit on Landscaping bills relating to Trumpet flyover, Adjudicating authority denied the same on the ground that the Appellant has undertaken landsc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and Associates Pvt. Ltd. v. Commissioner of Central Tax, Bengaluru East 2021 3) TMI 1050 - CESTAT BANGALORE ii. M/s Bosch Automotive Electronics India Pvt. Ltd. v. Commissioner of Central Excise, Bangalore - I, Commissionerate Bangalore 2017 (6) TMI 157 - CESTAT BANGALORE 13. As regards denial of CENVAT credit on Guest House caretaker salary, Adjudicating authority denied the same on the ground that the said services do not have any nexus with the output service provided by the assessee. The same is used for the personal benefit /consumption of the employees and hence do not qualify as input service in terms of the Rule 2(l) of Cenvat Credit Rules, 2004 and hence the credit availed by the assessee is irregular. In this regard, Learned Counsel further submitted that in Appeal No. ST/21313/2017, an amount of Rs. 77,851 has already been reversed by the Appellant and hence, the same may be appropriated towards reversal required for Guest House and breakfast expenses for Carnatic Music Festival. 14. As regards denial of CENVAT credit on construction services, Adjudicating authority denied the same on the ground that 'assessee has not produced any documentary evidence to show tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d 16. As regards denial of CENVAT credit on Mobile Command Post Vehicles, Projection Screens and Advertising Structures, Adjudicating authority denied the same on the ground that said goods are not used for provision of output service viz. Airport Service., Adjudicating authority to support the finding held that the Appellant cannot avail the credit of duties/taxes paid in respect of the goods which are not used by them for provision of output service in as much as the provisions clearly state that only the inputs, capital goods or input services used for provision of output service are eligible for availing the Cenvat Credit. Hence, the contention of the assessee that the mobile command post vehicle falls under the definition of capital goods and the advertising structures and projection screens are used for effective operations of the business and hence not eligible for availment of Cenvat credit cannot be accepted. In this regard, the Learned Counsel submitted that it is a special purpose customized motor vehicle designed and the same is neither used to carry passengers nor goods. The vehicle is a special purpose vehicle equipped with satellite telephone and internet communicat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. 20. As regards denial of CENVAT credit on professional services related to Hotel project, where the Expenses incurred by the appellant includes professional and consultancy fees paid in relation to arbitration, feasibility study for the investment in the Hotel project. Since these are incurred to know the viability and feasibility for the investment in such project, the same should qualify to be input services as held in the case of Ultratech Cement Ltd., (supra). Similarly CENVAT credit on Chartered Flights hired by Chairman and Managing Director, CENVAT credit on Pinnacle Award ceremony, CENVAT credit on sponsorship service and event management services with respect to events (for celebrating National and State functions such as Kannada Rajyotsava, independence day), CENVAT credit on Photography service (incurred for various airlines and other promotional events), CENVAT credit partially denied by the adjudication authority on Landscaping bills relating to Trumpet flyover, which includes landscape maintenance of landscaping as part of Airport activity in a greenfield airport, CENVAT credit on immigration services incurred for relocation charges of the expats, who have come to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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