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TMI Blog2017 (12) TMI 270X X X X Extracts X X X X X X X X Extracts X X X X ..... gible to get any cenvat credit on the facts and circumstances of the case since appellant did not bring out any appealable reason to satisfy that it has a proven case of nexus and integral connection between the input service and output manufactured - credit on these 4 services denied. Penalty - Held that: - the penalties shall stand reduced to the extent of credit of input services disallowed. Appeal allowed in part. - E/87190, 87191, 87192, 87224, 87250, 87251, 87342, 87343/16, 86178, 86213, 86214/17-Mum, E/CO/91099/17-Mum - A/90438-90449/17/SMB - Dated:- 13-10-2017 - Dr. D.N. Panda, Judicial Member Shri J.F. Pereira, Head-Indirect Taxes, for appellant Shri S.R. Nair, E.O. (AR), for respondent ORDER In this batch of appeals, the issues involved therein are as stated in column 1 of the Table below in respect of different appeals in column Nos. 2 to 12 thereof with the involvement of cenvat credit of the amounts stated under each such appeal against the respective services appearing under column No.1. TABLE-I Category of input service Appeal Nos Appeal Nos: 87224 of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 355 49 68 4 237 2780 8601 5033 rail travel agent 561 3 25 173 191 1552 7 104 1348 3639 1479 Director Fee (Reverse charge) 155 149 short term accommodation 1406 2450 sound recording service 2 8 survey map making 13678 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2606 1159 4197 Tour operator 15983 555 112 8231 2276 5310 1478 692 56906 130564 1489 Travel Agent service 9987 1 24 7523 38 Total 114989 4891 462 40402 4325 174460 20856 30731 297776 250550 97807 2. Appellant explains the reason of disallowance of cenvat credit by learned Commissioner (Appeals) in respect of the aforesaid items in TABLE-2 as under:- TABLE-2 Sr.no. Category of input service R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es and mainly it pertains to their activities relating to business which stands deleted from the definition. 6. Membership of clubs Since the said services come under express exclusion clause of the definition of input service, I hold that the lower adjudicating authority has rightly denied the cenvat credit to the appellant. 7. Outdoor catering service Since the said outdoor catering service comes under express exclusion clause of the definition of input service, I hold that the lower adjudicating authority has rightly denied the cenvat credit to the appellant. 8. Photography service The adjudicating authority has observed that these services have definitely not been used in or in relation to any business or manufacturing activities carried out by them or their HO. As the same was not specified in means portion of the definition of input services and mainly it pertains to their activities relating to business which stands deleted from the definition. 9. Public relation service ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ess which stands deleted from the definition. 15. Telecommunication service The adjudicating authority has observed that the said service is not specified service covered under the inclusive definition of input services under Rule 2(l) of CCR,2004 and no nexus can be established with in or in relation to the manufacture of goods. As the same was not specified in means portion of the definition of input services and mainly it pertains to their activities relating to business which stands deleted from the definition and appellant has not produce any tangible documentary evidence to substantiate their contention. 16. Telephone service - do - 17. Tour operator The adjudicating authority has observed that the appellant had made a plain averment stating that the said services were used in relation to their business without attributing any tangible evidence regarding the same. From the description of this service given by them, it would be difficult to establish clear nexus between the input services and the manufacturing / busine ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t Rules, 2004, the lower adjudicating authority has rightly denied the cenvat credit to the appellant.' 22. Works contract service Here I would like to mention that when the bills were wrongly booked, the same can be rectified which the appellant failed to provide. In absence of any tangible documentary evidence, I hold that the lower adjudicating authority has rightly denied the cenvat credit. 23. Insurance service Para 6.10- The adjudicating authority has observed from the evidences submitted by the appellant that it cannot be proved the these services are either directly or indirectly related to manufacturing activities and the series are not at all connected with the manufacturing activities. I find that the said services is not specified service to avail the cenvat credit and also comes under exclusion clause. Further the appellant in appeal also has not submitted any tangible documentary evidences to substantiate their contention that the impugned service has nexus with manufacturing activities. 24. Intellectual property s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s and maintenance work such as removing old damage plaster, plaster work sand finish, etc. The services are repair and maintenance services booked under Construction Service Category 3 Event Management Services The Event management services were received for attending seminars in relation to various manufacturing processes, hazardous and risk analysis of chemical process in the factory, conducting demos for use of products, dealers meet, etc. for promoting sales. 4 ailing List and Compilation Service The services were received in relation to secretarial audit, maintenance of company's shares and dividends, etc. is required for statutory compliance under the Company Law 5 Mandap Keeper Service The services were received during the course of customer relation meet etc., at the HO/ and other sales offices in relation to sales promotion activities of products. Hence, the said service is in relation to manufacture and sale of final product. 6 Membership of Clubs The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in relation to sales promotion 14 Survey and map making The services were received in relation to survey of land, areas etc. to set up manufacturing activity, manufacturing business, etc. 15 Telecommunication service The Telecommunication Services were received for communication between company employees, to communicate with vendors for purchase of raw materials for manufacturing, to communicate with customers for getting sales orders, etc. Hence, the service is in relation to manufacturing activity and sale of final product 16 Telephone services AS ABOVE 17 Tour operators The services were received for arranging bus facilities or organizing trips for dealers meet, seminars of sales staff, etc. at different locations. The dealer meet, seminars are conducted in relation to sales promotion of our product. Without sale, further manufacturing activity will not take place. Therefore, the said service is in relation to manufacture and sale of final product. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... services were received at our depots meant for storing finished products for further sale. Hence the service is in relation to manufacturing and sale of final products. 26 Architect service The services availed at office premises pertained to architect services received for renovation of our office structural audit report for our Head office building etc. The service provides at the office premises of the manufacturer has a nexus with the manufacture sale of the final product. The said service is covered under the means part of the definition of Input service under Rule 2(l) of CCR, 2004 which read as any service used by the manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products and clearance of final products upto the place of removal Therefore the services received even after 1-04-2011 are covered under the ambit of Input service definition 4. The justification shown by the appellant in respect of each of the services in column No.1 of the Table 4 is as below:- TABLE-4 S.No. Category of Input Service ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ommissioner (Appeals) failed to appreciate that services are intangible and their nexus cannot be similar to those of inputs where consumption can be proved as mentioned in Para 5 of Appeal filed before CESTAT- Page no.k 4 Mailing List and Compilation Service 1) The appellants submit that they have explained the uses of the services which establishes the nexus with manufacturing and clearance of final product. Even submitted the relevant input service invoices. The Ld. Commissioner (A) ought to have been satisfied with the above. 2) Even the Ld. commissioner (A) erred in not considering the ambit and scope of input service definition and instead proceed mechanically and arbitrarily to restrict the scope of Input service definition as explained in Appeal filed before Comm(A) (Refer para 3.1.c, page no. 9) 3)The Ld. Commissioner (Appeals) failed to appreciate that services are intangible and their nexus cannot be similar to those of inputs where consumption can be proved as mentioned in Para 5 of Appeal filed before CESTAT- Page no.k 5 Mandap Kee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e appellants submit that they have explained the uses of the services which establishes the nexus with manufacturing and clearance of final product. Even submitted the relevant input service invoices 2) Even the Ld. commissioner (A) erred in not considering the ambit and scope of input service definition and instead proceed mechanically and arbitrarily to restrict the scope of Input service definition as explained in Appeal filed before Comm(A) (Refer para 3.1.c, page no. 9) 9 Public relations service 1) The appellants submit that they have explained the uses of the services which establishes the nexus with manufacturing and clearance of final product. 2)Even the Ld. commissioner (A) erred in not considering the ambit and scope of input service definition and instead proceed mechanically and arbitrarily to restrict the scope of Input service definition as explained in Appeal filed before Comm(A) (Refer para 3.1.c, page no. 9) 10 Rail Travel Agents service 1) The appellants submit that they have explained the uses of the services ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rvices which establishes the nexus with manufacturing and clearance of final product. Even submitted the relevant input service invoices 2) Even the Ld. commissioner (A) erred in not considering the ambit and scope of input service definition and instead proceed mechanically and arbitrarily to restrict the scope of Input service definition as explained in Appeal filed before Comm(A) (Refer para 3.1.c, page no. 9) 15 Telecommunication service 1) The appellants submit that they have explained the uses of the services which establishes the nexus with manufacturing and clearance of final product. Even submitted the relevant input service invoices 2) Even the Ld. commissioner (A) erred in not considering the ambit and scope of input service definition and instead proceed mechanically and arbitrarily to restrict the scope of Input service definition as explained in Appeal filed before Comm(A) (Refer para 3.1.c, page no. 9) 3)The Ld. Commissioner (Appeals) failed to appreciate that services are intangible and their nexus cannot be similar to those of inputs where consumption can be proved as mention ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ants submit that they have explained the uses of the services which establishes the nexus with manufacturing and clearance of final product. 2) Even the Ld. commissioner (A) erred in not considering the ambit and scope of input service definition and instead proceed mechanically and arbitrarily to restrict the scope of Input service definition as explained in Appeal filed before Comm(A) (Refer para 3.1.d, page nos. 9 10) 3)The Ld. Commissioner (Appeals) failed to appreciate that services are intangible and their nexus cannot be similar to those of inputs where consumption can be proved as mentioned in Para 5 of Appeal filed before CESTAT, page no.k) 21 Rent-a-cab operator 1) The appellants submit that they have explained the uses of the services which establishes the nexus with manufacturing and clearance of final product. Even submitted the input service invoices of repairs and maintenance service. The credit of such service should be available to the appellant. 2) The Ld. Commissioner (A) failed to consider that the cenvat credit on services appearing in exclusion clause of input service d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... voices 2)The Ld. Commissioner (Appeals) failed to appreciate that services are intangible and their nexus cannot be similar to those of inputs where consumption can be proved as mentioned in Para 5 of Appeal filed before CESTAT 26 Architect service 1) The appellants submit that they have explained the uses of the services which establishes the nexus with manufacturing and clearance of final product. Even submitted the relevant input service invoices 2) The invoice of Chemifab Engineering pertains to repair and maintenance service was submitted inadvertently alongwith our reply to SCN in support of Architect service. This fact was brought to the notice of Ld. Commissioner Appeal in appeal filed before him and also submitted the proper invoices of Architect service. Even though the credit was disallowed on the grounds that this fact should have brought to the notice of adjudicating authority 5. In respect of the submissions as above, appellant relies on the citations in respect of each such service stated in column No.1 of the TABLE-5 below: TABLE-5 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Clubs a) Reliance Industries Ltd. Vs. CCE ST LTU, Mumbai 2016(45)S.T.R. 383 (Tri-- Mumbai) - page nos. 19 to 27 b) Hinduja Foundries Ltd. Vs. CCE, Chennai-I [2016(42) STR 494 (Tri. Chennai) - page nos. 28 to 31 7 Outdoor Catering service a) John Deere India P. Ltd. Vs. CCE, Pune-III [2016(41)S.T.R 990 (Tri-. Mumbai) - page nos. 4 to 7 b) ACCENTURE SERVICES PVT. LTD. [2015 (40) S.T.R. 719 (Tri. - Mumbai)] - page nos. 8 to 14 c) Reliance Industries Ltd. Vs. CCE ST LTU, Mumbai 2016(45)S.T.R. 383 (Tri-- Mumbai ) - page nos. 19 to 27 d) Mangalam Cement Ltd. Vs. CCE, Jaipur 2017 (49) S.T.R. 308 (Tri.-Del.) - page nos. 72 to 73 e) Wabco TVS. (India) Ltd. Vs. CCE, Chennai-II 2016 (44) S.T.R. 417 (Tri.-Chennai) - page no.74 to 75 8 Photography service a) ACCENTURE SERVICES PVT. LTD. [2015 (40) S.T.R. 719 (Tri. - Mumbai)] - page nos. 8 to 14 b) Wabco TVS. (India) Ltd. Vs. CCE, Chennai-II 2016 (44) S.T.R. 417 (Tri.-Chennai) - page no.74 to 75 9 Public relation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. 89 to 91 d) Principal Commissioner Vs. Essar Oil Ltd. 2016 (41) S.T.R. 389 (Guj.) - page nos. 92 to 94 18 Travel agents service a) Principal Commissioner Vs. Essar Oil Ltd. 2016 (41) S.T.R. 389 (Guj.) - page nos. 92 to 94 19 Clubs and association service a) PAM PHARMA. ALLIED MACHINERY CO. P. LTD. Versus C.C.E., MUMBAI-V 2016 (42) S.T.R. 757 (Tri. - Mumbai ) - page nos.15 to 18 b) Reliance Industries Ltd. Vs. CCE ST LTU, Mumbai 2016(45) S.T.R. 383 (Tri-- Mumbai) - page nos. 19 to 27 c) Hinduja Foundries Ltd. Vs. CCE, Chennai-I [2016(42) STR 494 (Tri. Chennai) - page nos. 28 to 31 20 Real Estate Agent Services a) Reliance Industries Ltd. Vs. CCE ST LTU, Mumbai 2016(45) S.T.R. 383 (Tri-- Mumbai) - page nos. 19 to 27 21 Rent-a-cab operator a) John Deere India P. Ltd. Vs. CCE, Pune-III [2016(41) S.T.R 990 (Tri-. Mumbai) - page nos. 4 to 7 b) Reliance Industries Ltd. Vs. CCE ST LTU, Mumbai 2016(45)S.T.R. 383 (Tri-- Mumbai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t establishing the nexus between the two. Consequently the cenvat credit involved in respect of following services are allowed:- TABLE-6 Sr. No. Input services allowed 1. Air Travel Agent 2. Commercial Industrial Construction 3. Event Management Services 4. Mailing List Compilation Service 5. Mandap Keeper Service 6. Outdoor Catering Service 7. Photography Service 8. Public Relation Service 9. Rail Travel Agent Service 10. Short Term Accommodation 11. Sound Recording Service 12. Survey and Map Making 13. Telecommunication Service 14. Telephone Service 15. Tour Operator Servic ..... X X X X Extracts X X X X X X X X Extracts X X X X
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