Wrongly disallowance of credit of Club Membership Service and Insurance Service of the appellant.

Last updated: 01 May 2021

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The Customs, Excise & Service Tax Appellate Tribunal ruled in favour of M/s Rajratan Global Wire Ltd., allowing Cenvat credit for club membership and insurance services. Previously, these credits were disallowed, with authorities citing amendments to the Cenvat Credit Rules, 2004, which excluded such services from the definition of input services after July 1, 2012. The Tribunal's decision suggests these services are indeed eligible for Cenvat credit.

Court :
CESTAT New Delhi

Brief :
The appellant M/s Rajratan Global Wire Ltd. is engaged in manufacture of wire of non alloy steel viz. steel wire, stranded wire and Tyre Bead wire. They are also availing the facility of Cenvat credit under Cenvat Credit Rules, 2004 (hereinafter CCR) on the inputs, capital goods as well as on input services. During the scrutiny of the appellant’s record AGMP Audit party observed that the appellant has availed incorrect Cenvat credit of service tax on ineligible services like Customs House Agent Service, Rent a Cab Operator Service, Banking and Financial Services, Insurance Services, Courier Services, Travel Agent Services, Subscription of Club Membership etc.

Citation :
EXCISE APPEAL NO. 50794 of 2019 (SM)

Daily Limit Reached