2017 (5) TMI 621

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..... manufacture whether prior to manufacture or after manufacture. Needless to say banking charges are paid in relation to purchase of raw materials and sale of finished goods and therefore such services is definitely relatable to the manufacture - credit allowed. Banking and Financial Service - Held that: - in all the bills Service Tax was paid on the Banking Commission charges in relation to foreign remittance and nowhere the charges in the said bills were collected relating to forward contract entered into between the appellant and the Bank. In these circumstances, the Service Tax paid on Commission Charge on foreign remittance is eligible to Cenvat Credit under the category of Banking and Forward Services. With regard to Cenvat Credit .....

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..... ence, the present appeals. 3. The Ld Advocate for the appellant submits that commission paid on foreign remittance, which attract Service Tax, definitely fall under the scope of the definition of Input Service laid down at Rule 2(l) of Cenvat Credit Rules, 2004. In support of his contention, the Ld Advocate referred to the decisions of the Tribunal in the case of Meghmani Dyes and Intermediates Ltd vs CCE, Ahmedabad 2013(32) STR 671 (Tri. Ahmd) and CCE, Surat II vs Vishal Malleables Ltd 2013(287) ELT. 234 (Tri. Ahmd) and CCE, Delhi-iii vs FlammMinda Automotive Ltd 2016(43) STR 549 (Tri. Delhi) . It is his contention that even though they had entered into a Forward Contract with the State Bank of India for purchase of US Dollar at a .....

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..... the judgment of this Tribunal in the case of Meghmani Dyes Intermediates, Vishal Malleables Ltd and FlammMinda Automotive Ltd (supra) cases. The dispute relates to charges paid by the appellants on receipt of Banking and Financial Services from State bank of India, which the Revenue claims to be in relation to forward contract charge. I do not find merit and substance in the allegation of Revenue in as much as on going through the specimen bills issued by the Bank and enclosed with the Appeal Paper Book, I find that invariably in all the bills Service Tax was paid on the Banking Commission charges in relation to foreign remittance and nowhere the charges in the said bills were collected relating to forward contract entered into betwee .....

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