Rambagh Palace Hotel Pvt. Ltd Vs Principal Commissioner of CGST & Central Excise (CESTAT Delhi)
New Delhi: The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Delhi Bench, has set aside an Order-in-Appeal that had confirmed demands for Cenvat credit reversal against Rambagh Palace Hotel Pvt. Ltd. The ruling, delivered in the case of Rambagh Palace Hotel Pvt. Ltd Vs Principal Commissioner of CGST & Central Excise, centered on the classification of services received by the hotel and the consequent eligibility for 100% Cenvat credit.
The dispute originated from two Show Cause Notices (SCNs) issued to Rambagh Palace Hotel Pvt. Ltd. The first SCN, dated November 24, 2010, covered the period from October 1, 2006, to March 31, 2010, demanding Cenvat credit amounting to Rs. 1,50,46,840/- along with interest and penalty. The second SCN, dated December 3, 2012, pertained to the period from April 1, 2010, to March 31, 2011, seeking Rs. 39,19,748/- in Cenvat credit, interest, and penalty. Both notices alleged that the appellant was not adhering to the procedures outlined in Rule 6(3)(ii) of the Cenvat Credit Rules, 2004.
Rambagh Palace Hotel Pvt. Ltd., registered for various taxable services including Mandap Keeper, Internet Café, Outdoor Catering, and Renting of Immovable Property, had been availing Cenvat credit on service tax paid for input services. A significant portion of this credit related to operation and management services provided by IHCL, Taj Mahal Hotel, Mumbai.
