2026-VIL-1289-CESTAT-MUM-CE
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CENTRAL EXCISE CESTAT Cases

Central Excise - Cenvat Credit – Eligibility of credit on aircraft running expenses and hiring charges of executive jet – Respondent involved in sourcing of jewelry through conversion of bullion and manufacturing gold jewelry, availed input service credit on services including aircraft running expenses and hiring charges of executive jet used for transportation of high-valued gold, travel of executive managers and directors for business oversight and inauguration of showrooms – Adjudication Authority denied credit alleging these services were not in relation to manufacture of final product – Appellate Authority allowed credit holding services were used directly or indirectly in or in relation to manufacture of final product and formed part of business and sales promotion activities – Whether aircraft running expenses and hiring charges of executive jet availed for transportation of gold and official business travel form eligible input services under Rule 2(l) of CCR, 2004 – HELD – The definition of input service under Rule 2(l) is very wide and inclusive definition covers activities relating to business and promotion of sales. Such services fall within ambit of input service as they are activities directly or indirectly related to business and promotion of sales – Services were availed for official business purposes including transportation of valuable goods and travel of company executives and directors for conducting business across various locations. Invoices were issued in the name of the Respondent and service tax was remitted on such services – In absence of any admissible evidence to substantiate misuse of services for non-business purposes, credit cannot be denied – The extended period of limitation cannot be invoked as suppression of facts with intent to evade payment must be deliberate and with willful intention which has not been established by department. No evidence was produced to show services were used for purposes other than official and business purposes – Appellate Authority's finding is sustainable. The impugned order allowing cenvat credit is upheld and appeal filed by Revenue is dismissed
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