9911796707
TMI Blog2014 (4) TMI 839X X X X Extracts X X X X X X X X Extracts X X X X ..... neat and clean is a statutory requirement in terms of Section 11 of Factories Act, 1948 and, hence, this service has to be treated as service having direct nexus with the manufacture of the final product, as without compliance with the provisions of the Factory Act, no manufacturer can engage in the manufacturing activity. Therefore, the impugned order disallowing the Cenvat credit in respect of this service is not correct. Impugned orders denying the Cenvat credit in respect of the above-mentioned services are not correct and the appellant have strong prima facie case in their favour. Hence, the requirement of pre-deposit of Cenvat credit demands, interest thereon and penalty is waived for hearing of these appeals and recovery thereof is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t credit and its recovery alongwith interest and also for imposition of penalty. The show cause notice dated 22/6/11 for the period from April 2007 to October 2008 was issued by invoking extended period under proviso to Section 11A (1) of the Central Excise Act, 1944. Both the show cause notices were adjudicated by jurisdictional Assistant Commissioner who by two separate orders confirmed the above-mentioned Cenvat credit demands alongwith interest. While in respect of first period of dispute, penalty of equal amount was imposed, in the second period of dispute, penalty of Rs. 25,000/- was imposed. On appeal to Commissioner (Appeals), both the orders were upheld by two separate orders-in-appeal against which these appeals have been filed al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly covered by the definition of 'input service in Rule 2 (l) of Cenvat Credit Rules, 2004, that in respect of the period prior to 1/4/11, the Tribunal in the case of Andhra Pradesh Paper Ltd. reported in 2010 (254) E.L.T. 354 has held that the consultancy charges paid by the assessee to Chartered Accountant can be directly related to business, that in view of this, judgment during the period prior to 1/4/11, the legal service availed by manufacturer has to be treated as related to manufacturing business, that the appellant, therefore, have a strong prima facie case and, hence, the requirement of pre-deposit of Cenvat credit demand, interest and penalty may be waived for hearing of their appeals and recovery thereof may be stayed till the di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Therefore, I am of prima facie view that this service is also covered by the definition of input service. 8. As regards the legal service for the period w.e.f. 1/4/11, this service is specifically covered by definition of 'input service' and for the period prior to 1/4/11, the Tribunal in case of Andhra Pradesh Papers Ltd. (supra) has held that this service is an activity related to business and hence covered by the definition of 'input service'. 9. In view of the above discussion, I am of the prima facie view that the impugned orders denying the Cenvat credit in respect of the above-mentioned services are not correct and the appellant have strong prima facie case in their favour. Hence, the requirement of pre-deposit of Cenvat credit de ..... X X X X Extracts X X X X X X X X Extracts X X X X
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