2015 (4) TMI 645 - AT - Central Excise

Denial of Cenvat credit - security services availed for the factory and sales commission paid against Business Auxiliary Service availed - Held that - Nexus of the expenditure on security services used for the factory and manufacture facility there at being not possible to be isolated, Rule 2(l) of the Cenvat Credit Rules, 2004 allows Cenvat credit on service tax paid to avail such service and sales promotion expenses being attributable to the service availed, input credit of service tax paid cannot be denied on the commission paid. Further, the service tax paid on the security service availed for protection of factory is admissible for existence of inextricable link between the services and the manufacturing facility for which that was used - Decided in favour of assessee.

Summary

The Appellate Tribunal CESTAT CHENNAI allowed the appeal, condoning a 62-day delay in filing. Cenvat credit was permitted on security services for the factory and sales commission under Rule 2(l) of Cenvat Credit Rules, 2004 due to the inextricable link between services and manufacturing facility. Service tax paid on these expenses was deemed admissible.