Overseas Infrastructure Alliance (India) Pvt. Ltd. Vs Commissioner of CGST (CESTAT Mumbai)
Summary: The CESTAT Mumbai partially allowed the appeals filed by M/s. Overseas Infrastructure Alliance (India) Pvt. Ltd. against Order-in-Appeal No. NA/GST/A-III/MUM/179-181/2018-19 dated 03.08.2018. The dispute concerned admissibility of CENVAT credit on Club and Association services and Outdoor Catering services for the period prior to 2011. In respect of Outdoor Catering services, the appellant did not press the issue because the amount involved was only ₹6,347/-. The principal issue therefore concerned CENVAT credit on Club and Association services. The appellant relied upon an earlier Tribunal order, No. A/85742-85743/2020 dated 11.09.2020, which had decided the issue for the subsequent period in its favour.
The Tribunal examined Rule 2(l)(C) of the CENVAT Credit Rules, 2004 and observed that, with effect from 01.04.2011, membership of a club was specifically excluded from the definition of “input service” where the service was used primarily for personal use or consumption by an employee. The Tribunal noted that this exclusion would not apply where the membership was not used personally, such as corporate club membership without naming a specific employee. The appellant had established that memberships included ASSOCHAM, National Highway Builders Federation, Taj Mahal Hotel and Federation of Indian Exports Organisation.
