2018 (6) TMI 114 - AT - Central Excise

CENVAT credit - service tax paid on various input services - hired labourers supplied to canteen service for cleaning of utensils and for renovation and setting up the factory - out of pocket expenses in respect of administrative charge in relation to accounting etc - denial also on the ground that the bill numbers and date were not pre-printed - Held that - Pre-printing of serial number on the bill as issued by the service provider is not mandatory requirement in respect of service providers - Revenue charges have not disputed that the service tax liability discharged by the service providers on these documents is accepted by the Revenue authorities having jurisdiction over the service providers. If that be so find that denial of CENVAT Credit to the appellant on this ground is incorrect - credit allowed. Supply of manpower which was utilized in the canteen of the appellant - Held that - There is no dispute that the supply of manpower was in the factory premises of the appellant and he had deployed few work man in the canteen which is within the factory premises - Credit cannot be denied. The service tax liability discharged by the service providers on drinking water equipment maintenance designing of antibiotics visual aid antibiotics brand card antibiotics bookmark antibiotics posters/notepad and installation of modular partition misc dismantling demolishing waterproofing work and validation autoclave would be eligible for availment of CENVAT Credit as these are in relation to the manufacturing of final goods of the appellant. Various services used in Renovation of factory - Held that - These services are for renovation of the factory premises wherein pharmaceutical goods are manufactured and since they are being in relation to the manufacture of final products the impugned order denying CENVAT Credit is incorrect. CENVAT credit - input services - Charges of photocopy - Out-of pocket Expenses - Fixing of ceramic Stone - Hiring of outside Vehicles for Transportation of Employees after 1.04.2011 - Servicing of Company cars - Held that - the CENVAT credit are ineligible - credit denied. Appeal allowed in part.

Summary

Issues:
Denial of CENVAT Credit on various input services.

Analysis:
The appeal challenges the denial of CENVAT Credit to the appellant on multiple input services. The lower authorities rejected the credit due to reasons such as missing bill numbers and dates, laborers not directly related to manufacturing, and expenses not deemed eligible as input services. The appellant, a Government of India undertaking, contests these allegations, arguing that the denial of credit is incorrect.

The learned Counsel for the appellant presents a detailed case, highlighting that the invoices' content, despite lacking pre-printed bill numbers and dates, still reflect discharged service tax liabilities. The tribunal acknowledges the argument, emphasizing that pre-printing serial numbers on bills is not mandatory for service providers. Moreover, it notes that the Revenue authorities accepting the service tax liability discharge further supports the appellant's claim. Consequently, the denial of CENVAT Credit on these grounds is deemed incorrect.

Regarding the supply of manpower for canteen services within the factory premises, the tribunal rules in favor of the appellant, emphasizing that such services are integral to the manufacturing process, warranting CENVAT Credit allowance. The tribunal sets aside the impugned order and allows the credit for specific services, including manpower supply and various other services related to manufacturing activities.

In a comprehensive analysis of the services under dispute, the tribunal categorizes them based on their relation to manufacturing activities. Services directly linked to the manufacturing of final goods are deemed eligible for CENVAT Credit, while those related to factory renovation are also considered valid for credit. However, services unrelated to manufacturing, such as charges for photocopying, out-of-pocket expenses, and maintenance of company cars, are confirmed as ineligible for credit.

The tribunal concludes by partially allowing the appeal, confirming the eligibility of certain services for CENVAT Credit while rejecting others based on their direct relevance to the manufacturing process. The detailed analysis provides clarity on the specific services deemed eligible or ineligible for credit, ensuring a balanced and reasoned decision in the matter.