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TMI Blog2017 (1) TMI 646X X X X Extracts X X X X X X X X Extracts X X X X ..... disbarred by any of the clauses (A), (B), (BA) or (C) of the Explanation to Rule 2(l) ibid - all these services are very much eligible "input services" - credit allowed. Construction of Overhead tank - Capital Civil Sundry Work - Labour charges for fabrication and erection of DSL system - Held that: - I find that they are in the nature of services relating to construction or execution of works contract or civil structure or part thereof or laying foundation of making of structures for setting up of capital goods which are specifically disbarred by (A) to the Explanation to Rule 2 (l) ibid - the services would not qualify as an eligible input service for the purpose of Rule 2(l) - credit disallowed. Transport & Loading Charges - Held t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her availment of credit amount of ₹ 41,828/- in respect of certain input services and reducing penalty under Rule 15 (1) of the Rules to ₹ 2000/- however, denied remaining disputed credits amounting to ₹ 1,16,382/-. Aggrieved, appellant is before this forum. 2. Today when the matter came up for hearing, Ld. Advocate Shri M. Kannan submitted that the remaining disputes on eligibility of input service credit pertain to the following input services availed by the appellant : (a) Construction of Overhead tank Ld. Counsel submits that this is a factory related expenditure and the tank is required for storing water to be used in foundry operations. Hence, this will be covered within the scope of rule 2(l) of CCR 2004 as a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Loading Charges Ld. Counsel submits that this expenditure is incurred with reference to transport and trading of raw material, semi-processed goods and as well as final products. Since the services are in connection with excisable goods and is incurred in the course of manufacture of excisable goods, credit cannot be disallowed. (h) Labour charges for fabrication and erection of DSL system Ld. Counsel submits that this is for manufacturing purposes. Hence credit availed for Service Tax payment for the said activity will be eligible for credit. (i) Professional services charges rendered regarding tax benefit for rights issue Since the issue related to equity shares of the company and the share related activity is specifically ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ervices are very much required by appellant in furtherance of the business and industrial activity and hence credit should not be denied. 4. On the other hand, Ld.A.R Shri S. Govindarajan, AC vehemently opposed the appeal stating that the Commissioner (Appeals) has analyzed the issue on hand in great detail and reasoned finding vis-a-vis eligibility or otherwise of the impugned input services. 5. Heard both sides and gone through the facts of the case. 6. All the disputed input service credit pertain to the period after 1.4.2011 from which date definition of input services on the Rule 2(l) of the CCR 2004 stood amended. As per Rule 2(l) as applicable during the relevant period, while examples of certain services are given in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... led on transport and loading charges i.e.Sl. No. (g) of the aforesaid list, I find that these services relate not only to transportation and loading charges incurred with respect to raw material but also semi-processed as well as final products. There is no individual break up of the categories available and accordingly only for the limited purpose of determining the eligibility of each of the individual services, and also amounts involved in each case, the matter is required to be remanded to the original authority for de novo consideration. It is clarified that such de novo consideration will only to with respect to verifying individual break up of the transport and loading charges of various accounts and also determining the eligibility ..... X X X X Extracts X X X X X X X X Extracts X X X X
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