9911796707
TMI Blog2017 (9) TMI 611X X X X Extracts X X X X X X X X Extracts X X X X ..... 017 - Shri Anil Choudhary, Member (Judicial) Shri Bhushan D. Jani, C.A. For Appellant Shri S.V. Nair, Superintendent (AR) For Respondent ORDER Per : Anil Choudhary The appellant is contesting the disallowance of certain input services during the period April, 2010 to December 2010, which have been disallowed by the court below on the ground that these are not related to the business of the appellant and/or manufacturing activity, as per the definition in the CENVAT Credit Rules. 2. Show cause notice dated 28/04/2011 was issued for the period April 2010 to December 2010, as it appeared to revenue in the course of audit that the appellant are manufacturer of rectifiers, diodes etc. have taken CENVAT credit of ₹ 7,92,018/- which is not admissible to them and accordingly proposed to disallow the said credit along with proposal to impose penalty under Rule 15(1) of CENVAT Credit Rules, 2004. The show-cause notice was decided vide Order-in-Original dated 18/07/2012. The additional Commissioner was pleased to drop the proposed demand for ₹ 3,14,215/- and was pleased to confirm the disallowance for ₹ 4,77,8,03/-. Further penalty of ₹ 5 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Electronic Industries Association of India (ELCINA) IEEMA. 6,922.00 12 Telecommunication Services 116.00 13 Xerox Payment of Xerox Charges for the Xerox Machines installed in factory on Contract basis. 4,911.00 14 Mandap Keeper Monsoon Shed made out of Tarpaulin for during monsoon season for protection of finished goods, raw materials and machines from rain water. 37,926.00 3.1 Annual Gathering Services ₹ 1,910/-: the learned Counsel urges that these expenses were incurred for annual gathering meetings of the staff of the company who are in managerial capacity in the various units of the appellant. Such meetings are useful for exchange of ideas and towards increase of efficiency and profitability. As such these meetings have indirect benefit on the manufacturing activity of the appellant. The learned Commissioner (Appeals) have erred in observing that the CENVAT credit not allowable as the bill in quest ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd that the appellant have made sales to Chittaranjan Locomotive Works which is a unit of the Railways. The learned Counsel also urges that under the terms of purchase, it is the appellants liability and responsibility to deliver the goods at the doorstep of the buyer. The risk lies with them and the transfer of property takes place upon delivery at the buyers doorstep in good condition. As the purchase order is not available on record nor produced during the course of hearing, I remand the issue to be adjudicating authority to verify the facts from the purchase order. If the facts as stated before this tribunal are found as per the purchase order or the agreement, then to consider and allow the same in accordance with law, keeping in view the directions of the CBEC in Circular No. 97/6/2007/ST dated 23/8/2007. 3.6 Hall Hiring Charges ₹ 927/- :- the learned Counsel urged that holding annual general meeting is essential for the appellant, being a limited company in compliance with the provisions of the Companies Act. Accordingly, I hold the amount of ₹ 927 to be fully allowable under Rule 2(l) of CENVAT Credit Rule, 2004. 3.7 The next ground is regarding CENVAT cre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is essential for the appellant industry to keep track of the industrial news including, improvement in technology, etc. for smooth running of their industry. Accordingly the said expenditure is in relation to the manufacturing of finished products and is held to be allowable under Rule 2(l) of CENVAT Credit Rules, 2004. 3.12 Telecommunication Services ₹ 116/-: the learned Counsel said that they're not contesting this disallowance as it of small amount and reversed the said amount vide entry number 42 dated 06/05/2013. 3.13 Xerox ₹ 4,911/-: the learned Counsel states that these are for payment of the charges for the Xerox machine installed in factory on contract basis. The learned Commissioner states that these services had been received for providing maintenance and making Xerox copies at the head office, as such there is no relationship in or in relation to manufacturing of finished goods or carrying on business. I find that the xerox expenses are an essential business expenditure incurred in the office of the appellant company and as such is expenditure which is related to the business and manufacture of finished goods and accordingly the same is held allow ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
