Bharat Sanchar Nigam Ltd. Vs Commissioner of GST & Central Excise (CESTAT Chennai)
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Chennai, partly allowed the appeal filed by Bharat Sanchar Nigam Limited (BSNL) against an order denying Cenvat credit on housekeeping services and rent-a-cab services for the period from September 2011 to March 2012. The dispute arose after the Department found that BSNL had availed Cenvat credit on rent-a-cab services, annual maintenance contracts for air conditioners, and housekeeping services. While credit relating to air-conditioner maintenance was allowed by the adjudicating authority, credit on housekeeping and rent-a-cab services amounting to ₹11,69,677 was disallowed, along with imposition of a penalty of ₹1,00,000. The appellate authority upheld the adjudication order, leading to the present appeal.
The Tribunal examined the definition of “input service” under Rule 2(l) of the Cenvat Credit Rules, 2004 as applicable during the relevant period. It observed that the definition consists of a main part covering services used for providing output services, an inclusive part expanding the scope of eligible services, and an exclusion clause specifically barring certain categories of services. The Tribunal noted that while the inclusive part is to be interpreted broadly, the exclusions expressly carved out by the legislature remain outside the ambit of eligible input services.
