The Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that the bank can avail cenvat credit on the amount of tax paid on input services of panthal and shamiana service was availed by the appellant on the eve of the inauguration of their new building/branch.
The appellant is engaged in banking and financial services. The department denied input services of panthal and shamiana service was availed by the appellant on the eve of the inauguration of their new building/branch holding that there is no nexus between the input services and the output services of banking and financial services.
The appellants claimed that the service was essential for providing the banking and financial services.
After considering the rival submissions, the Tribunal noted panthal and shamiana services availed by the appellant is essential for the promotion of banking and financial services.
“The said services are utilized by the appellant to inform the public that a new branch has been started in the said place. Such services would help the appellant to attract customers and also inform the public about the new branch inaugurated. For these reasons, I find that the disallowance of CENVAT credit on such input services cannot be justified. The credit availed by the appellants on panthal and shamiana services is therefore allowed. The impugned order is set aside and the appeal is allowed with consequential relief if any,” the Tribunal said.Subscribe Taxscan AdFree to view the Judgment