2019 (1) TMI 1303 – CESTAT MUMBAI – TMI – CENVAT Credit – input services – services of personal insurance of employees – security agency services in respect of the guest house – Held that:- In view of the embargo created in the definition of input service, service tax paid on insurance service for insuring the employees should not be considered as input service for the appellant – credit cannot be allowed.
–
Security service availed by the appellant for its guest house, which is located outside the factory – Held that:- There is no nexus between such disputed service with the output service provided by the appellant. Hence service tax paid on the security service should not be considered as input service for the purpose of availment of Cenvat benefit – Credit cannot be allowed.
–
Demand of interest and penalty – irregularly availed CENVAT Credit, not utilized – Held that:- The irregularly availed Cenvat Credit had not been used/utilized by the appellant for payment of service
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
sed by the Commissioner of Central Excise (Appeal-I), Pune. 2. Brief facts of the case are that the appellant is engaged in providing various taxable services, defined under the Finance Act, 1994. For providing the taxable services, the appellant got itself registered with the Service Tax Department. The appellant avails Cenvat Credit on service tax paid on various input services. During the disputed period, the appellant had availed Cenvat Credit of service tax paid on services of personal insurance of employees and security agency services in respect of the guest house. Availment of Cenvat benefit by the appellant was disputed by the Central Excise Department on the ground that the disputed services are not confirming to the definition of input service and also have no nexus with the output service provided by the appellant. Accordingly, show cause proceedings were initiated by the department, which culminated into the adjudication order dated 31.03.2017, wherein Cenvat Credit amount
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
nput service for the appellant. With regard to security service availed by the appellant for its guest house, which is located outside the factory, there is no nexus between such disputed service with the output service provided by the appellant. Hence service tax paid on the security service should not be considered as input service for the purpose of availment of Cenvat benefit. Therefore the impugned order, to the extent it denied the Cenvat benefit on insurance service and security service sustains. 5. I find that the irregularly availed Cenvat Credit had not been used/utilized by the appellant for payment of service tax on the output services provided by it. In absence of utilization of Cenvat Credit, it cannot be said that there is loss of revenue to the Government exchequer, which can be compensated by way of payment of interest. Further, the Cenvat Credit particulars availed by the appellant were reflected in the books of accounts, which were verified by department for confirmi
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =