2017 (10) TMI 493

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..... y subcontractors while providing output service, therefore, the appellants are entitled to CENVAT credit of service tax paid on input service provided by subcontractors - credit allowed - appeal allowed - decided in favor of appellant. - E/20742/2015-SM - Final Order No. 22366 / 2017 - Dated:- 1-8-2017 - Shri S. S. Garg, Judicial Member Mr. Syeed Peeran, Advocate Lakshmi Kumaran Sridharan For the Appellant Mr. Naveen Kushalappa, AR For the Respondent ORDER Per : S. S. Garg The present appeal is directed against the impugned order dated 20.11.2014 passed by the Commissioner (A) whereby the Commissioner (A) has rejected the appeal of the appellant. 2. Briefly the facts of the present case are that the appellants .....

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..... property and activity carried out by the sub-contractor has not resulted into manufacturing activity as per Section 2(f) of the Central Excise Act, 1944. Hence a show-cause notice issued to the appellant demanded of ₹ 32,53,225/- for wrongly availed input service tax credit on erection and commissioning under Section 11A of the Central Excise Act, 1944 read with Rule 14 of the CENVAT Credit Rules, 2004, proposing to demand applicable interest under Section 11AB of Central Excise Act, 1944 read with Rule 14 of CENVAT Credit Rules, 2004 and also proposing to impose penalty under provision of Section 11AC of the Central Excise Act, 1944 read with Rule 15 of the CENVAT Credit Rules, 2004. The original authority after due process confirme .....

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..... ioning. 4.1 In support of his submission, that the input service credit is admissible on erection and commissioning, he relied upon the following decisions: * Veena Industries Ltd. vs. CCE, Vapi: 2016 (42) STR 299 (Tri.-Ahmd.) * BSNL vs. CCE, Chandigarh: 2017 (47) STR 246 (Tri.-Chan.) * BSNL vs. CCE, Chandigarh: 2016 (42) STR 356 (Tri.-Del.) 4.2 He further submitted that immobility is irrelevant in determining eligibility of input service credit and for his submission, he relied upon the following three decisions: * CCE, Delhi vs. Bellsonica Auto Components India Pvt. Ltd.: 2015 (40) STR 41 (P H) * Reliance Gas Transportation Infrastructure Ltd. vs. CST, Mumbai: 2016 (45) STR 286 (Tri.-Mum.) * Honda Moto .....

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