Keihin Fie Private Limited Vs Commissioner of Central Excise (CESTAT Chandigarh)
CESTAT Chandigarh held that Travel Agency Service, AMC Photocopy Machines and Broadband services used for the purpose of business and not for any personal use is eligible for CENVAT Credit.
Facts- The appellant, an Indo-Japanese venture, is engaged in the business of manufacture and sale of carburetors and other goods, classifiable under Chapters 84 and 87 of the Central Excise Tariff Act, 1986.
On the basis of audit, five show-cause notices for the period 2005-06 till April 2012 were issued in relation to the disallowance of CENVAT credit on Input Services. Commissioner vide the impugned order allowed substantial CENVAT credit but denied CENVAT credit on inadmissible Input Services. Being aggrieved, the present appeal is filed.
Conclusion- With regards to Travel Agency Service, it is held that the service tax paid to travel agents for making arrangements of the employees to visit customers, suppliers and other authorities is for the purpose of business only and cannot be termed as “for personal use of the employees‟. Further, with regard to CENVAT on AMC Photocopy Machines and Broadband Services, it is held that these services fall very much in the definition of “Input Service” as both the services are required for the business purposes and not for any personal use.
FULL TEXT OF THE CESTAT CHANDIGARH ORDER
These five appeals are directed against the common Order-in-Original dated 22.11.2012 passed by the Commissioner (Appeals) of Central Excise whereby the Commissioner (Appeals) has denied the CENVAT credit on Input Services to the tune of Rs.13,41,243/-. The details of the Input Services on which the CENVAT credit was denied are given herein below:
