9911796707
TMI Blog2017 (5) TMI 939X X X X Extracts X X X X X X X X Extracts X X X X ..... x for the various services received by them for raising the finance, CENVAT credit can be availed. Credit allowed - decided in favor of appellant. - E/88/10 - A/86776/17/SMB - Dated:- 22-3-2017 - Mr. M.V. Ravindran, Member (Judicial) Ms. Manasi Patil, Advocate, for appellant Shri N.N. Prabhudesai, Supdt. (AR), for respondent ORDER Per: M.V. Ravindran This appeal is directed against order-in-appeal No.P-III/VM/222/09 dated 21.10.2009. 2. Heard both sides and perused the records. 3. The issue that falls for consideration in this case is regarding availment of CENVAT credit on service tax paid on the services provided by M/s PL Advisory Services Pvt. Ltd. (PLA) under the category of Banking Other Financial Services on account of advisory and placement charges relating to private placement of equity shares during January 2007. The said PLA raised bill on the appellant for the services rendered and also charged service tax of ₹ 47,29,436/- of which the appellant took CENVAT credit. Revenue is of the opinion that such CENVAT credit is not eligible as the services rendered is not fall under the category of input services and they were not in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hority have misdirected their entire findings in denying CENVAT credit of the service tax paid under Banking Other Financial Services by the said M/s PL Advisory Service Pvt. Ltd. 6.2 Firstly, I find that when the amounts raised by M/s PL Advisory Service Pvt. Ltd. were undisputedly used by appellant for the manufacturing activity i.e. for the business during the relevant period is itself an indicator that the said services rendered by M/s PL Advisory Service Pvt. Ltd. has intrinsic relation to the manufacture of business activity of the appellant. 6.3 I also notice that the decision of the Tribunal in the case of Hinduja Global Solution (supra) would directly apply in the case in hand wherein the Tribunal in paragraph 5.5 and 5.6 held as under:- 5.5 The plain reading of the definition of input services (as hereinabove reproduced) would indicate that the activities relating to business which is in the second portion of the definition includes the activity of financing which would mean that if an assessee pays Service Tax for the various services received by them for raising the finance, Cenvat credit can be availed. In our considered view, the Cenvat credit a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stipulation in clause (ii) is that the input services should be received by the manufacturer of the final product. Hence, even as a matter of first principle on a plain and literal construction of Rule 3(1) the Tribunal was not justified in holding that the appellant would not be entitled to avail of Cenvat credit in respect of services utilized in relation to ammonia storage tanks on the ground that they were situated outside the factory of production. The definition of the expression input service covers any services used by the manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products. The words directly or indirectly and in or in relation to are words of width and amplitude. The subordinate legislation has advisedly used a broad and comprehensive expression while defining the expression input service . Rule 2(1) initially provides that input service means any services of the description falling in sub-clauses (i) and (ii). Rule 2(1) then provides an inclusive definition by enumerating certain specified services. Among those services are services pertaining to the procurement of inputs and inward transportation of inputs. The Tri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vices namely; (a) Services used in relation to setting up, modernization, renovation or repairs of a factory, (b) Services used in an office relating to such factory, (c) Services like advertisement or sales promotion, market research, storage upto the place of removal, procurement of inputs, (d) Activities relating to business such as, accounting, auditing, financing, recruitment and quality control, coaching and training, computer networking, credit relating, share registry and security, inward transportation of inputs or capital goods and outward transportation upto the place of removal. Thus, the definition of input service not only covers services, which fall in the substantial part, but also covers services, which are covered under the inclusive part of the definition. 28 .. 29. The expression activities in relation to business in the definition of input service postulates activities which are integrally connected with the business of the assessee. If the activity is not integrally connected with the business of the manufacture of final product, the service would not qualify to be a input service under Rule 2(1) of the 2004 Rules. ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
