2016 (10) TMI 510 - AT - Central Excise

Denial of CENVAT credit - Photograph Services - Outdoor Catering - Research & Development Services - nexus between the input services and the manufacturing activity - Held that - there appears integral connection between the input services and the manufacturing activity - CENVAT credit allowed. Condonation of delay of seven days in filing appeal - Held that - There appears no deliberate intention on the part of the appellant to come to the Tribunal - delay condoned. Appeal allowed - decided in favor of appellant.

Summary

Issues:
Delay in filing the appeal
Disallowed Cenvat credit on three services
Nexus between input services and manufacturing activity

Delay in filing the appeal:
The appellant acknowledged a delay of seven days in filing the appeal but asserted no deliberate intention in the delay. The Tribunal, finding no deliberate intention, condoned the delay and admitted the appeal for disposal.

Disallowed Cenvat credit on three services:
The appellant contended that Cenvat credit on photograph services, outdoor catering, and research & development services was disallowed. They provided justifications for each service, such as using photograph services for verifying the manufacturing process, outdoor catering for providing food to employees, and research & development services for improving technology in the braking system. The Revenue argued there was no nexus between the claimed input services and the manufacturing activity. However, after hearing both sides and examining the records, the Tribunal found an integral connection between the input services and the manufacturing activity, thereby allowing Cenvat credit on all three items.

Nexus between input services and manufacturing activity:
The Revenue contended that there was no connection between the claimed input services and the manufacturing activity. However, the Tribunal disagreed, stating that the justifications provided by the appellant demonstrated a clear purpose for the manufacturing activity. The Tribunal found an integral connection between the input services and the manufacturing activity, leading to the allowance of Cenvat credit on all three items.

In conclusion, the Tribunal allowed the appeal regarding the disallowed Cenvat credit on the three services, finding a valid connection between the input services and the manufacturing activity. Additionally, an appeal scheduled for a later date was granted time for arguments, and both miscellaneous applications were allowed.