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TMI Blog2014 (5) TMI 218X X X X Extracts X X X X X X X X Extracts X X X X ..... or in the Director's affidavit to show that the shares were sold for accomplishing any purpose integrally connected with the business of the appellant? c. Whether, the Hon'ble CESTAT is correct in holding that the stock broker's service is not an input service within the ambit of definition under Rule 2(l) of CCR, 2004? d. Whether the Hon'ble CESTAT is correct in not following its own earlier decision in Bharat Fritz Werner case on very same issue? 3. The appellant/assessee is a manufacturer and supplier of telecom equipment and other related products such as Mobile phone exchanges, SMPS Power Plant, High Speed line driver, assembled printed circuit board for telecom equipment, CDMA wireless test set and cellular mobile telephones falling under the Chapter 85 of the Central Excise Tariff Act, 1985. The appellant also claims to manufacture in relation to taxable services such as installation, commissioning, maintenance and repair, manpower supply in respect of its products and also renting of immovable property and clears its final products on payment of duty to the manufacturers or on payment of output Servic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... per the affidavit filed by the Working Director of the Company is as under : "the money received as sale proceeds of the shares were credited to the current account of the company maintained with Axis Bank and the same merged with other moneys which were lying to the credit of the company in the said account. The money was used for the company's operational purposes such as paying creditors, salaries, capital expenditure repaying the company's debts and the like. As the company has branch offices and is holding accounts with other banks also, the money from the above current account has been transferred to other banks also. I state that, in the bank account, distinction cannot be maintained based on the source of money credited to the account. The bank account of the company will contain thousands of transactions of debits and credits and it is not able to trace the source of money for each cheque issued by the company or each debit made to the bank account. Once the credit is available, it is used in the ordinary course of business for all the business purposes. In this case, I state that all the sale proceeds arising out of Bharti Airtel shares have been used for the company's ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing of some shares held by the assessee/company in some other company and the rendering manufacturing or service activities. Therefore, the Tribunal thought it proper not to interfere and dismissed the appeals. 11. It is against this order of the Tribunal, the present appeal, as noticed earlier, is filed. 12. Appearing on behalf of the appellant, submission of Mr. Gururaj, learned counsel is that the Tribunal has not borne in mind the definition of input service as defined in Rule 2(l) of the Cenvat Credit Rules; that the assessee had in fact utilized the amount realized in the sale of shares for the purpose of investing in the business activities of the assessee; that it had been credited to its current account and used for the payment of salaries and discharge of other loans, etc. and therefore, it is a relatable activity as it is very much an integral part of the business activity of the company; submits that the authorities and the Tribunal are in error in disallowing the Cenvat credit. 13. Notice had been issued to the respondent/department who is represented by Mr. Dinesh Kumar - learned Senior Standing Counsel for the respondent. 14. Mr. Dinesh Kumar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itters, amplifiers, receivers, walkie-talkie sets, systems circuits required in military and commercial, electrical industry, including heavy-duty weather-proof communications, telephones, radio frequency microphones, computers rack and panel printed circuits and television components, potentiometers, micro-switches and trimmers. Though the activity of investment and dealing with the monies of the company, not immediately required in any manner as found in paragraph 8 of memorandum, comes under objects incidental or ancillary to the attainment of the main objects, it is nevertheless one of the objects of the company and therefore, it cannot be said that it is not an activity with which the company is involved. 19. On the other hand Mr. Dinesh Kumar, learned Standing Counsel for the respondent/Revenue submits that the main object of the company is only to manufacture telecom sets of all types and its components and also manufacture of telecom and electronic equipments, etc. While the assessee is carrying on its main activity, the objects incidental or ancillary to the attainment of main objects is not carried on by the assessee and at any rate as pointed out by the learned co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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