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TMI Blog2016 (9) TMI 680X X X X Extracts X X X X X X X X Extracts X X X X ..... ief facts of this case are as under:- a. The Appellants are engaged in refining and clearing diverse petroleum products. During the period January 2014 to September 2014, (M/s HPCL, Visakh Refinery) the Appellants availed Service tax on credit on gardening services, booking binding services, ticket booking services, e-filing services, repairs to culvers piling works, business improvement services/catering/restaurant services, painting services, mechanical repairs to tanks, washing of lab coats/ laundry services, crane hiring services, foreign payments, data entry services, consultancy services, fabrication services, erection commissioning services, shifting of scrap services, road cleaning services, AMC for Godrej make furniture, water washing of vehicles etc. Department issued SCN dt.30.01.2015 alleging that the above services were not eligible for CENVAT Credit and the Service Tax paid on these items were in no way involved in or in relation to the manufacture by the assessee and it was recorded in the SCN that as per the definitions of CENVAT Credit Rules 2004, these input services were not eligible for CENVAT Credit. b. Adjudicating Authority passed the impugned Order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 241/- b. As far as a manufacturer is concerned, in the eligibility of CENVAT credit availment on service tax paid on all services (except those that are specifically excluded from the eligibility like civil foundation, specified employee related expenses etc.) that are used in the manufacturing process, there is no change even after 01 .04.2011. c. The demands made in impugned Order do not reflect the quantum of proportionate reversal done by the Appellants under Rule 6 of the CENVAT Credit Rules while availing the CENVAT credit, during the relevant period covered by the impugned order. d. The impugned Order has assumed that the said services are specifically excluded from the definition of the input services. The Appellants rely on the Supreme Court decision in the case of Ramala Sahkari Chini Mills Limited vs. CCE Meerut / reported in 2010 (260) ELT 321 (SC) where the Court has ruled that as per the language of Rule 2(g) of the CENVAT Credit Rule 2002, the Legislature did not intend to impart the restricted meaning to the definition of inputs for the input services and accordingly referred the matter to Larger Bench. Thus, it is very clear that on the eligi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sement or sales promotion, market research, storage upto the place of removal, procurement of inputs, accounting, auditing, financing, recruitment and quality control, coaching and training, computer networking, credit rating, share registry, security, business exhibition, legal services, inward transportation of inputs or capital goods and outward transportation upto the place of removal [but excludes], - (A)---------- (B)---------- (C) Such as those provided in relation to outdoor catering, beauty treatment, health services, cosmetic and plastic surgery, membership of a club, health and fitness centre, life insurance, health insurance and travel benefits extended to employees on vacation such as Leave or Home Travel Concession, when such services are used primarily for personal use or consumption of any employee;] [but excludes], [(A) service portion in the execution of a works contract and construction services including service listed under clause (b) of section 66E of the Finance Act (hereinafter referred as specified services) in so far as they are used for- (a) construction or execution of works contract of building or a civil structure or a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /lodging. In view of the specific inclusion of services used in relation to coaching and training , I hold that the appellant is eligible to avail the aforesaid credit on this item. c. Interior development (Disputed credit ₹ 7,24,626/-) Appellants have submitted that this service has been utilized to cater seating arrangements for refinery manpower and refinery infrastructure by service provider KPS Projects Ltd. These activities are definitely are not in the nature of the excluded services in the A, B, BA and C of the said Rule 2(I). This being so, I hold that the appellant is eligible to avail the said credit. d. AMC for furniture (Disputed credit ₹ 2,310/-) e. Repairs for JCB (Disputed credit ₹ 6,118/-) I find that aforementioned activities are in the nature of services in relation to repairs, which is specifically part of the inclusions in Rule 2(l). Hence I hold that the appellant is fully eligible to avail the said credits on the said services. f. Washing of vehicle (Disputed credit ₹ 3.928/-) I find that the said Rule 2(l) is inclusive definition along with certain specific exclusions. In any case, the impugned activity d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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