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PJ/Case Law /2016-17/3272

Credit eligibility for rental service of xerox machine, courier, architect and GTA service.

Case:- STERIL GENE LIFE SCIENCES PVT. LTD. VERSUSCOMMR. OF C. EX., PUDUCHERRY
 
Citation:- 2016 (42) S.T.R. 355 (Tri. - Chennai)
 
Brief Facts:-The disputes are relating to disallowance of Cenvat credit in respect of the following services availed:
(i)Rental service of xerox machine
(ii)Courier service
(iii)Architect Service
(iv)GTA service for transportation of building material used in construction of the factory premises
 
Appellant’s Contentions:-Appellant’s submission is that all the four services above were used for and in relation to the business as well as the manufacturing activity of the appellant. He justifies that xerox machine being used for business and also such service is indispensable there should not be denial of such Cenvat credit of service tax paid on rental service of xerox machine.
So far as courier service is concerned, this service of courier is used for business which is regularly availed to either dispatch the documents of business or the goods. Therefore, that is also not indispensable. Thirdly, the service of architect was utilized for construction of factory premises. Such service is indispensable. There cannot be disallowance of Cenvat credit of the service tax paid to avail such service. The last category is GTA service availed to transport the building material used in construction of the factory. Learned appellate authority allowed service tax paid on construction service as Cenvat credit. Therefore, denial of GTA service is inconceivable.
 
Respondent’s Contentions:-Revenue on the other hand says that all the services being irrelevant there should not be allowance of Cenvat credit.
 
Reasoning Of Judgement-The Tribunal heard both sides and perused the records.
 
The justification and the reason stated by the appellant as above does not require any difference nor also further elaboration since Revenue has no dispute to such reasoning. Therefore, both the appeals are allowed.
 
Decision- Appeal allowed.
 
Comment- The gist of the case is that Cenvat credit taken on input services of rental service of xerox machine, courier service, Architect’s services utilized for construction of factory premises and GTA services availed for transporting building materials used in construction of factory are eligible to Cenvat credit as they are indispensible to the working of the business of the assessee.
 
Prepared By- Praniti Lalwani
 
 

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