Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2017 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (6) TMI 268 - AT - Central ExciseCENVAT Credit - input services - Miscellaneous Fabrication and Erection Service - Male Nurse Service - Service for Traveling expenses - Membership subscription service - denial on account of nexus - Held that - The Miscellaneous Fabrication or Erection service is used for repair and maintenance of the plant and machinery. Therefore, the same is directly related to the manufacturing activity - credit allowed. Male Nurse Service - Held that - this service is provided by male nurse appointed in the In-house Dispensary of the factory of the appellant. This health service is under statutory obligation and this health service is provided for emergency such as accident, injury to the employees during the production activity. Therefore, it is directly related to the manufacturing activity - credit allowed. Travelling services - Held that - it is related to the travel agent for ticket booking of the staff of the appellant. The staff travels at various location in connection to business activity of the appellant, such as supply of raw material, sale of finished goods, marketing and promotion etc. Therefore, the travelling service is directly related to the business activity of the appellant - credit allowed. Membership subscription - Held that - it is in respect of chemical magazine for up to date knowledge on the technical issue of chemical. It is necessary for the concerned technical staff to have the day to day knowledge, which in turn contributes in better performance of manufacturing activity in the appellant s factory - this membership subscription is not for any personal use but directly for the overall activity of the appellant s business - credit allowed. Appeal allowed - decided in favor of appellant.
Issues: Admissibility of CENVAT Credit for various services
Miscellaneous Fabrication and Erection Service: The appellant contended that this service is related to repair and maintenance of plant and machinery, not structural construction, making it admissible for CENVAT Credit. Supported by Tribunal decisions. The judge found in favor of the appellant, citing similar precedents. Male Nurse Service: The service provided in the factory's in-house dispensary for employees' treatment was denied credit for being considered personal use. The appellant argued it was statutory and directly related to manufacturing activities. Supported by relevant judgments, the judge ruled in favor of the appellant. Service for Traveling Expenses: The appellant claimed these services were directly used in the overall business, such as for staff traveling for business-related activities. Supported by judgments, the judge found the service to be an input service related to the business activity, allowing the CENVAT Credit. Membership Subscription Service: The subscription for a Chemical Magazine aimed at improving technical staff performance was deemed directly useful for production. The judge allowed the membership subscription as an input service, supported by relevant decisions. The judge carefully considered submissions from both sides and found all services directly or indirectly related to the production or overall business activity of the appellant. Citing precedents, the judge ruled in favor of the appellant for all services, concluding that they were admissible input services. As a result, the impugned order was modified, and the appeals were allowed.
|