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TMI Blog2017 (7) TMI 396X X X X Extracts X X X X X X X X Extracts X X X X ..... in the manufacture of rubber and non-threaded articles. During the course of verification of records by the department, it appeared that the appellants wrongly availed input service credit on Multi Protocol Label Switching (MPLS) service based on invoices issued by BIL, during the period 2010-11 to 2013-14. It emerged that BIL had received MPLS service from M/s. BSNL and M/s. Reliance Communications Ltd., and that the server was situated at the premises of the former. It had further appeared that BIL had utilized MPLS service for communicating and retrieving data from their sub-contractor appellants. BIL raised invoices to the appellants towards reimbursement of the above MPLS charges along with service tax components indicated therein. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ervice was rendered by BIL, hence, availment of credit of service tax component reflected in those invoices was incorrect. 2.4 Accordingly proceedings were initiated against these appellants proposing demand of service tax credit allegedly availed wrongly, along with interest liability thereon and imposition of penalty under various provisions of Finance Act, 1994 and Rules thereto. These proposals were confirmed in adjudication by the original authorities concerned and on appeal, the Commissioners (Appeals) vide impugned orders upheld the orders of the adjudicating authority. Hence the appellants are before this forum. 3.1 Today when the matter came up for hearing, in respect of M/s. Aztec Auto and M/s. Wichitra Auto Ltd., the Ld. Counse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... server is utilized to monitor the production and other related activities of the appellants by BIL (b) The MPLS, SAP usage by the appellants through the server of BIL cannot be considered as beneficial service utilized in or in relation to the manufacturing activities or in furtherance of their business. (c) MPLS, SAP services are not utilized by the appellants but only by BIL and only a proportionate cost which is paid by BIL to the actual service providers is being sought to be passed on to the appellants. 5. Heard both sides and gone through the submissions made by both sides. 6.1 From the facts on record it is discernable that MPLS and SAP are utilized by BIL and that too only for the purpose of monitoring the manufacturing activiti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le under the head description of service it has been mentioned as BSS however the said invoices also clearly indicates MPLS cost 2013-14-III Qtr . This aspect also shows that the whole exercise was only for the benefit of BIL and that billing was only an exercise to shift part of the MPLS cost to the appellants. 6.3 With regard to case laws cited by the Ld. Counsel, I find that these are all rendered by the Single Member Benches of the Tribunal. In any case, the common thread running through these case laws is that the appellants therein were availing those services in connection with their manufacturing activities only and in the case of India Vision Satellite Communications Ltd. (supra), the decision was that the service recipient is not ..... X X X X Extracts X X X X X X X X Extracts X X X X
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