Order Date – 20 February 2023

Parties: M/s ETA Travel Agency Pvt Ltd Vs The Commissioner of Service Tax 

Facts – 

• The Appellant, M/s ETA Travel Agency Pvt Ltd, were engaged in providing Air Travel Agent Service (ATAS) and Business Auxillary Service (BAS). They had availed the credit of various input services received. 
• Three Show Cause Notices were issued for recovery of Cenvat Credit wrongly taken and also for short payment of Service Tax on Overriding Commission utilized for the period from October, 2007 to September, 2010 under Rule 14 of Cenvat Credit Rules, 2004 (CCR,2004).

Issue –

• Whether the denial of Cenvat credit was in order?

Order –

• The Tribunal observed that the Hon’ble High Court of Judicature of Mumbai (Nagpur Bench) in the case of CCE, Nagpur Vs. Ultratech Cement Ltd. (2010 (20) STR 577 (Bom.), has held that for an input service the expression “activities in relation to business” in the definition of “input service‟ postulates activities which are integrally connected with the business of the assessee.
• Input service covers not only services directly, in or in relation to the manufacture of final product but also various services used in relation to the business of manufacture whether prior to manufacture or after manufacture.
• In the absence of any intention of the legislature to restrict the definition of “input service‟ to any particular class or category of services used in the business. Hence the appeals are allowed.