STO 2009 CESTAT 951
Applicability of Central Excise and Service Tax Sections to CENVAT Credit: Sections 11A and 11AB will be applicable where the CENVAT credit in question has been utilised for payment of duty of excise on final products whereas Sections 73 and 75 of the Finance Act are applicable where the credit has been utilised for payment of service tax on output services. CENVAT Credit: Commissioner (Appeals) has correctly observed that it is for the department to prove that mobile phones were not used in or in relation to manufacture. Cenvat credit of Service Tax on mobile phones is admissible and the revenue’s appeal rejected. CENVAT Credit: Credit availed on inputs and capital goods and input services can be utilised for discharging the liability of Service Tax on GTA services. Revenue’s appeal rejected.
Interpretation of Input Services: Any service to be brought within the ambit of definition of "input service" should be one which should specify the essential requirement contained in the main part of the definition. This requirement is equally applicable to the various items mentioned in the inclusive part of the definition as well.
CENVAT Credit: Company is not entitled to CENVAT credit on "services" in question. In respect of some of the said services, they have not adduced evidence to establish the nexus, if any, between the "services" and the manufacture/clearance of the final products. CENVAT Credit also denied as no documentary evidence is available on record for claiming credit.
