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TMI Blog2018 (6) TMI 185X X X X Extracts X X X X X X X X Extracts X X X X ..... ty, marketing and research of the few products - R & D activity was undertaken at Mumbai as there cannot be any dispute that it is in interest of the business, research and development is a primary requirement - the appellant is eligible to avail CENVAT credit of service tax for the Renting of Immovable Property, Security Services, Cleaning, Internet, Works Contract Services - CENVAT credit on other services disallowed. Time Limitation - Held that:- The demand is raised on audit objection, wherein, Audit party, has specifically stated that CENVAT credit cannot be availed and this is first audit of the assessee - case on the limitation for the setting aside demand of CENVAT credit on the works contract services, is devoid of merits and is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble input service. 2.1 On being pointed out by the audit, the appellant has paid part amount of ₹ 11,26,813/- pertaining to credit taken on one Works Contract Service, in respect of element (a) above but they did not pay the corresponding interest penalty payable. They admitted the objection mentioned at (b) above and paid ₹ 9,393/- along with interest of ₹ 2,849/- and penalty of ₹ 1,931/-. A show cause notice was issued on 18.09.2015 covering the objection at (a) above. It was viewed that the appellant are neither manufacturing nor providing any taxable services at their R D Unit but they are willfully availed the ineligible CENVAT credit of service tax on the services received at R D unit and utilized the sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mbai are used for administration, sales and marketing and as also R D wing activity. It is his submission that the denial of CENVAT credit of the service tax paid on Renting of Immovable Property Services, Security Services, Cleaning Services, Internet Services and Business Auxiliary Services is incorrect as these services are received at Mumbai office it is utilized by the appellants for selling and marketing purposes and also R D wing activity which are manufacturing activity of the appellant. It is his submission for both the lower authorities recorded that the research conducted in the appellant s premises at Mumbai office has not resulted in any commercial activity and ineligible to avail CENVAT credit. It is his submission, as a speci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pril, 2011 CENVAT credit availed on service tax paid on construction services CENVAT credit excluded. He relied upon the order of Tribunal in the case of Mangalore Refinery Petrochemicals [2013 (30) STR 475] for the proposition that the Mumbai office having not been registered as input service distributor, appellant factory at Hyderabad unit cannot be availed the CENVAT credit of the service tax paid on renting of immovable property service, security services, cleaning service, internet service and business auxiliary services and relied upon the judgment of Hon ble Punjab Haryana High Court in the case of Maruthi Suzuki India Ltd., [2016 (336) ELT 266] for the proposition that nothing used in R D activity, CENVAT credit cannot be availe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vices are rendered by the service providers at the Mumbai premises which was used by the appellant for the sales related activity, marketing and research of the few products. I find that the lower authorities are denying the CENVAT credit to the appellant on the ground that the products which were researched at Mumbai, nevertheless, were not in relation to manufacturing activity, were not commercially produced. In my view these findings are acceptance of fact that seems R D activity was undertaken at Mumbai as there cannot be any dispute that it is in interest of the business, research and development is a primary requirement. I find that the lower authorities have stated in the orders that if the appellant should have obtained registrati ..... X X X X Extracts X X X X X X X X Extracts X X X X
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