IOT Infrastructure & Energy Services Ltd. Vs Commissioner of Central Goods & Service Tах (CESTAT Mumbai)
Availment of Cenvat Credit in respect of Service Tax paid on rent-a-cab and insurance services
In the case of IOT Infrastructure & Energy Services Ltd. vs Commissioner of Central Goods & Service Tax, CESTAT Mumbai examined the denial of CENVAT Credit on service tax paid for rent-a-cab and insurance services. The appellant challenged the lower authorities’ orders, arguing that these services did not fall under the exclusion category of ‘input service’ under Rule 2(l) of the CENVAT Credit Rules, 2004. The appellant further contended that the authorities had not provided specific reasons for denying the CENVAT Credit and requested that the matter be remanded to the original authority for proper fact-finding.
During the hearing, the Revenue’s Authorized Representative acknowledged that no specific findings were recorded regarding the denial of CENVAT Credit on the disputed services. The Tribunal noted that both lower authorities failed to assign reasons for the denial.
Considering this lack of justification, CESTAT Mumbai set aside the impugned orders and allowed the appeal by way of remand. The matter was directed back to the original authority for detailed fact-finding and the issuance of reasoned orders. The Tribunal also emphasized that the appellant must be granted an opportunity for a personal hearing before a fresh decision is taken.
