Case Law Details
UCO Bank Vs Commissioner of Service Tax (CESTAT Kolkata)
Introduction: The case of UCO Bank vs. Commissioner of Service Tax before the CESTAT Kolkata revolved around the eligibility of UCO Bank for Cenvat credit on service tax paid for telephone bills related to employee residences. The order sheds light on the intricacies of service tax regulations and their application.
Detailed Analysis: UCO Bank appealed against the Order-in-Original passed by the Commissioner of Central Excise, Kolkata-I, challenging the confirmation of demands for duty, interest, and penalties. The appeal focused on several aspects, including the disallowance of Cenvat credit on service tax for residential telephone bills, non-payment of service tax, and demands related to interest on the sale of government securities.
The appellant argued that the definition of ‘input service’ during the material period encompassed activities relating to business, including services indirectly connected to output services. They relied on various judgments and precedents to support their claim, emphasizing the liberal interpretation of ‘input service’ under the law.
CESTAT Kolkata, drawing from precedent and the definition of ‘input service’, ruled in favor of UCO Bank, allowing Cenvat credit for service tax paid on telephone bills related to employee residences. The tribunal noted that the issue had been settled in previous cases and upheld the appellant’s eligibility for the credit.
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