2025-VIL-231-CESTAT-CHD-CE
  1. Home
  2. 2025-VIL-231-CESTAT-CHD-CE

CENTRAL EXCISE CESTAT Cases

Central Excise - Cenvat Credit, Input Services, Construction Services, Outdoor Catering Services, Insurance Services, Air Travel Agent Services – Denial of Cenvat Credit on certain services, namely, setting up and expansion of the factory (Commercial or Industrial Construction), Outdoor Catering Services, Insurance Services, and Air Travel Agent Services - Whether the appellant is eligible for Cenvat Credit on the services related to setting up and expansion of the factory (Commercial or Industrial Construction) - HELD - The Cenvat Credit on construction services for setting up and expansion of the factory is eligible as these services are directly used for manufacturing and are covered under the inclusive part of the definition of "input service" during the relevant period prior to 01.04.2011. The Tribunal relied on the decisions of the Hon'ble Punjab & Haryana High Court in CCE vs. Bellsonica Auto Components India P Ltd and the Tribunal's own decision in Rico Auto Industries Ltd, which held that such construction services cannot be said to be remotely connected to the final product and are eligible for Cenvat Credit - the impugned order is set aside and the appeal is allowed to the except to the extent that the appellant is liable to pay interest on the amount reversed by them in respect of outdoor catering service – Ordered accordingly - Whether the appellant is eligible for Cenvat Credit on Outdoor Catering Services provided to the employees in the factory premises - HELD - Outdoor Catering Services provided to the employees in the factory premises are eligible for Cenvat Credit as these services are an activity relating to the appellant's business and are included in the "means" clause of the definition of "input service" prior to 01.04.2011. The Tribunal relied on the decisions in CCE vs. Ultratech Cement Limited, Kansal Nerolac Paints Limited vs. CCE, Keihin Fie Pvt Ltd vs. CCE, and Ganesan Builders Limited vs. CST, which have held that such catering services are indirectly used in the manufacture of final products and fall within the definition of "input service" - Whether the appellant is eligible for Cenvat Credit on Insurance Services for the factory building and employees - HELD - Cenvat Credit on insurance of the factory building is eligible as the factory building is an integral part of the appellant's business and insuring it covers the loss of profit due to stoppage of work, which is directly related to the manufacture of the product. The Tribunal also held that the Cenvat Credit on group health insurance of the employees is eligible as it is an activity relating to the business and is included in the "means" clause of the definition of "input service". The Tribunal relied on the decisions in Sarita Handa Exports P Ltd vs. CCE, RMZ Infotech Pvt Ltd vs. Commr of Central Tax, CCE vs. Munjal Kiriu Industries Limited, and Zoloto Industries vs. CCE to arrive at this conclusion - Whether the appellant is eligible for Cenvat Credit on Air Travel Agent Services for the international travel of expatriate employees - HELD - Cenvat Credit on Air Travel Agent Services used for the international travel of expatriate employees for purchasing plants, machineries, tools, and dies, and attending technical training at the Japan office of the appellant, is eligible as these services are directly or indirectly used in relation to the manufacture of final products. The Tribunal relied on the decisions in Goldman Sachs India Securities Pvt Ltd vs. CST, Innovasynth Technologies Limited India Limited vs. CCE, and Xilinx India Technology Services Pvt Ltd vs. CCE&ST to arrive at this conclusion.
Download File
show more Judgements  

Quick Search

/

Advance Search

GST Resources

/

Gst Rate Finder

Tax Vista

Your Biweekly Tax Recap

By Dr. G. Gokul Kishore

Weekly Summary

VIL Video

Credit Notes ITC Reversal in IMS…
By Vivek Jalan

Create Account

Security-Code
New Code?

Log In

New User ? Forgot Password ?

Forgot Password

Security-Code
New Code?
Please Note: This facility is only for Subscribing Members.

Email this page

Feedback this page

Schedule a Demo

Schedule a demo to know the features and advantages of VILGST portal. Get to know the tips to find the desired results in faster way.

Caselaw Request Form (CRF)

Didn’t find what you are searching for? No worries, please give us the following details and VIL will email you the desired Caselaws at the earliest:

Security-Code
New Code?