9911796707
TMI Blog2012 (12) TMI 30X X X X Extracts X X X X X X X X Extracts X X X X ..... are the following:- (1) Service tax mount of Rs.28,930/- on security services for their factory at Chandigarh. (2) Service tax amount of Rs.6,248/- on services billed by the service provider in the name of "Valco Aluminium Extrusion" and "Vishnu Associates Ltd." (3) Service tax amount of Rs.5601/- on Insurance of vehicles registered in the personal name of the Director, and mobile phones used by Directors. (4) Service tax amount of Rs.1,483/- paid on fee for membership of Clubs for Directors. (5) Service tax amount of Rs.2,518/- relatable to services exclusively relatable to Baddi unit. 3. Revenue's case is that these services were received ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... td". A few service provides had issued bills in their earlier name. There is no other company by name. "Vishnu Industries Ltd." and the services in question was received by them and utilized. So considering provisions of the proviso to Rule 9(2) of Cevant Credit Rules, 2004 there is no justification in denying the credit. 6. In the case of insurance of vehicles, the argument of the appellant is that though these vehicles were registered in the name of the Directors the vehicles were bought using funds of the company and it were reflected as assets in the balance sheet of the company. Further the entire expenditure on vehicle was being met by the company only. He argues that the conveyance provided to the Director was for better functioning ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... no nexus with process of manufacture. But from the definition of input services at Rule 2(l) of Cenvat Crdit Rules, it is very clear that the level of nexus required in the case of input services is lower than that for inputs. Input services taken for furthering business prospects also is covered though such services may not be have direct nexus with manufacturing process. One of the main objections raised by Revenue is that the appellant did not follow the procedure of getting registered as 'input service distributor'. In the instant case bills received at Headquarters were transferred to one factory. There was no distribution as such. Since there have been decisions of the Tribunal that there is no serious irregularity in taking credit in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tors. Quite often companies register such assets in the name of the Directors as it may be convenient to transfer the vehicle to the Directors themselves on payment of depreciated cost at the end of the tenure of the Director. Since during the relevant time, the vehicles were stated to be used by the Directors of the company in the interest of the company as evidenced from the fact that the expenditure was being met by the company, I hold that Cenvat credit can be allowed in respect of such items also. However, it is necessary to verify the factual submissions regarding the fact that vehicles were figuring as assets in the balance sheet of the company and its expenditure was being met by the company. Further, it is necessary to apportion th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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