The Custom, Excise, and Service Tax Appellate Tribunal (CESTAT) in the case of M/s Taj Sats Air Catering vs. C.C.G.S.T held that the service providers other than tour operator/ rent-a-cab cannot avail cenvat credit on transportation. And in this case, it was considered to be the rent a cab or tour operator and hence the appeal was allowed.
The brief facts of the case are that the assessee M/s Taj Sats Air Catering is engaged in providing the management Consultant Services, manpower supply, and recruitment, storage and warehouse service and mainly catering services. The C.C.G.S.T claimed that the assessee has wrongly claimed the credit in the cenvat credit account on the service tax which is paid by the M/s Taj Sats Air Catering pertaining to the transportation of its employees from one place to another.
Wherefore the issue raised in this case was whether an assessee can claim the credit for transportation of employees from one place to another even if it is not a tour operator?
The Custom, Excise, and Service Tax Appellate Tribunal (CESTAT) comprising of Ajay Sharma a Judicial Member held that the credits on the tour operator service or rent-in-cab are only applicable in the case of the assessee is the service provider. Further, the meaning of rent-a-cab was elaborated in the light of the decision in the case of M/s Marvel Vinyls Ltd. vs. Commissioner of Central Excise the service tax can be paid on services such as renting of motor vehicles, etc. Wherefore the tribunal held that the appellant i.e. M/s Taj Sats Air Catering is entitled to Cenvat credit for rent a cab or tour operator and hence the appeal was allowed. Thus, the service providers other than tour operators/ rent-a-cab cannot avail cenvat credit on transportation.
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