Hotel accommodation service used by employee is an eligible input service for availment of Credit

Last updated: 29 October 2022

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The CESTAT has ruled that hotel accommodation used by employees for business purposes, specifically for providing 'Erection, Commissioning, and Installation' services, qualifies as an eligible input service for claiming CENVAT credit. The tribunal found that such accommodation is essential for delivering the taxable output service. Consequently, the appeal was allowed, and the assessee is entitled to consequential benefits.

Court :
CESTAT, Delhi

Brief :
The Hon'ble CESTAT, Delhi in M/s Bharat Heavy Electricals Ltd. v. Commissioner, Central Excise & CGST-Dehradun [Final Order No. 50958 / 2022] held that the Hotel accommodation service received by the appellant is an eligible input service under Rule 2(l) of the CENVAT Credit Rules, 2004 ("CCR"). Further, the CESTAT allowed the appeal and held that the assessee is also entitled to consequential benefits.

Citation :
Final Order No. 50958 / 2022

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1 Year PLAN

1999

(Excl. of GST ₹359)

2 Years PLAN

3499

(Excl. of GST ₹629)

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3 Years PLAN

4999

(Excl. of GST ₹899)

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Judgement posted by

Bimal Jain

Service

FCA, FCS LLB with21 Yrs of Experience inTaxation Indirect and Direct: Education Qualification: B.Com (Hons) Chartered Accountants Company Secretary LLB Qualified SAP FI/CO Consultants Professional Membership: Chairmanof Indirect Tax Committee of PHD Chamber of Commerce Member of Indirec ... Read more

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