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TMI Blog2014 (12) TMI 699X X X X Extracts X X X X X X X X Extracts X X X X ..... ner (Appeals) and the Tribunal. The service tax paid on sales commission in respect of procuring orders by M/s.Adhunik Corporation cannot be utilised by the appellant for taking credit for the goods not manufactured as a final product and cleared from the appellant's manufacturing unit. On an understanding of the Rule 2(l) of the Cenvat Credit Rules, there is no manner of doubt that input service means goods which is used by the manufacturer directly or indirectly in relation to the manufacturing of final product and clearance of final product from the place of removal. In the present case, the Department has allowed cenvat credit in respect of the value of goods amounting to ₹ 5.41 crores and denied for the balance. We find no err ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l was right in holding that the credit taken on input service is liable to be reversed even though there is no specific method of computation of value during the disputed period? 4. Whether in the facts and circumstances of the case, the Tribunal was right in holding that only the input services used directly or indirectly or in or in relation to the manufacture of taxable goods alone is eligible for credit in terms of Rule 2(l) of the Cenvat Credit Rules, 2004? 5. Whether in the facts and circumstances of the case, the Tribunal was right in quantifying the demand in a method which is not prescribed either in the Act or in the Rules? 2. The appellant is engaged in the manufacturing of parts of pre-heater and clearing the same to Da ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er of Central Excise, No.1, Williams Road, Cantonment, Tiruchirapalli within 30 days of the receipt of this notice, as to why: a) an amount of ₹ 17,21,791/- (Rupees seventeen lakhs twenty one thousand seven hundred and ninety one only) towards service tax and Education Cess to the tune of ₹ 33,047/- (Rupees thirty three thousand and forty seven only) both totalling ₹ 17,54,838/- (Rupees seventeen lakhs fifty four thousand eight hundred and thirty eight only) being the amount of wrong availment of Service Tax credit taken on the service tax paid on the materials procured and supplied should not be recovered under the proviso to Sec.11A(1) of Central Excise Act, 1944 read with Rule 14 of the Cenvat Credit Rules, 2004. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es, 2004. ii. I confirm the demand of interest on the above amount confirmed in (i) above, at appropriate rates under Section 11 AB of Central Excise Act, 1944 read with Rule 14 of the Cenvat Credit Rules, 2004. iii. I also impose a penalty of ₹ 10,000/- (Rupees Ten Thousand only) on M/s.F.L.Smidth Ltd., Dalmiapuram. 5. Aggrieved by the said order of the Adjudicating Authority, the appellant filed an appeal before the Commissioner (Appeals), who upheld the order of the Adjudicating Authority and thereafter the appellant pursued the matter before the Tribunal. The Tribunal concurred with the finding of the Adjudicating Authority and the Commissioner (Appeals) dismissed the appeal. As against the said order of the Tribunal, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... earned counsel appearing for the appellant that they are manufacturing and supplying pre-heaters to Dalmia Cement (B) Ltd. and there is no dispute that input service means service used by a provider of taxable service for providing an output service or used by the manufacturer, whether directly or indirectly in or in relation to the manufacture of final products and clearance of final products from the place of removal. 8. If this definition is understood in a proper manner, it will only reveal that input service means service used by the appellant - manufacturer directly or indirectly in or in relation to the manufacture of final products and clearance of final products from the place of removal. In the present case, the pre-heater val ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. In the present case, there is no dispute that the appellant availed credit on commission in respect of trading goods, which are not in or in relation to the manufacture of final products and therefore there are not eligible to avail credit on the commission paid on trading goods. 6. The learned counsel submitted that the appellant had not taken any CENVAT credit on input service attributable to trading. I do not find any merit in this submission insofar as it is admitted position that the appellant had taken CENVAT credit on that portion of service tax relating to the commission paid on the trading goods. The case laws relied upon by the learned Advocate, perhaps, would support the case of the Revenue. In the case of Ultratech Cement ..... X X X X Extracts X X X X X X X X Extracts X X X X
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