2018 (6) TMI 635

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..... the definition of input services and could be eligible for credit. The appellants have availed the services of M/s. Ambit Corporate Finance Ltd. for the purposes of selling their automotive component division to raise funds. Raising funds is nothing but obtaining finance for the appellant-company. Such activity is definitely integrally connected to the manufacturing activity of the company. In any case, it would fall within the cover of activities relating to business of manufacture. Denial of credit unjustified - appeal allowed - decided in favor of appellant.
Ms. Sulekha Beevi C.S., Member (Judicial) Shri T.R. Ramesh, Advocate for the Appellant Shri S. Govindarajan, AC (AR) for the Respondent ORDER The above appeal was disposed by .....

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..... . The Head Office of the appellant which is an ISD distributed the credit to the appellant units situated at Faridabad and Puducherry. Department was of the view that the appellants are not eligible to avail credit on the management consultancy services as these services do not have nexus with the manufacturing activity. Show cause notices were issued to the appellant at Faridabad Unit as well as their Puducherry Unit. The present appeal pertains to the show cause notice issued to the Puducherry Unit. After due process of law, the original authority confirmed the demand, interest and imposed penalties. In appeal, Commissioner (Appeals) upheld the same. Hence this appeal. 3. He submitted that the appellant had obtained the advice of M/s. Am .....

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..... ntral Excise Vs. Gujarat Heavy Chemicals Ltd. - 2011 (22) STR 610 (Guj.) and argued that the Hon'ble High Court in the said case has relied upon the decision of the Hon'ble Supreme Court in the case of Maruti Suzuki Ltd. - 2009 (240) ELT 641 (SC). That since these activities have no connection with the manufacturing activity of the appellant, credit is not eligible. 5. Heard both sides. 6. At the outset, it has to be stated that the period involved is 2008. The definition of input service prior to 1.4.2011 had a wide ambit as it included the words "activities relating to business". This apart, the inclusive part of the definition itself mentions the word "financing". The Tribunal in the case of Tamilnadu Petroproducts (supra) has observed .....

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