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TMI Blog2018 (9) TMI 1120X X X X Extracts X X X X X X X X Extracts X X X X ..... t:- It is seen that the authorities below have allowed credit in respect of service tax paid on charges paid to the auditor. The appellant is contesting the service tax paid on the conveyance charges for the auditor. However, he has not furnished any document to show that the vehicle used for conveyance of the auditor was registered in the name of the service provider - credit denied. Manpower used for TDS entry - Held that:- Since the appellant has to do the work of deducting the tax at source, manpower have been used for such work (data entry), the disallowance of credit is unjustified - credit allowed. Insurance service - Held that:- It is seen that the appellant had availed goods transit insurance as well as employees insurance. Needless to say that the goods transit insurance is directly related to the manufacturing activity and therefore eligible for credit. With regard to employees insurance, which is in the nature of covering the risk of gratuity amount, I am of the view that the same would not fall within the exclusion clause. The manufacturer avails such insurance to cover the financial risk that he would have to face in case of payment of gratuity to employees and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... consultancy service, book adjustment / manpower and other services. He explained that the credit in respect of the input service shown as outward transportation service is actually received for courier service. The appellant had sent samples of medicines to the buyers abroad and had availed the courier service for this purpose. Only when the appellant sends the samples abroad, they can get purchase orders from the foreign buyers. Therefore, this is in fact a type of sales promotion / marketing service for which courier agency services were availed by the appellant. He argued that the rejection of credit alleging that these are outward transportation service is incorrect. 2.1 The authorities below have rejected the claim under the heading auditor fee. The service tax paid on charges for auditor fee has been allowed. However, the conveyance charges incurred by the appellant for the auditor on which was service tax was paid has been disallowed stating that such services (Rent-a-cab) are not eligible for credit after 1.4.2011. He submitted that such rent-a-cab service availed for bringing the auditor to the factory was highly necessary for the appellant and therefore is eligible for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ices are integrally connected with the manufacturing activity. This was erroneously stated to be book adjustment and therefore has been rejected by the authorities below. He submitted that the appellant would be able to furnish documents to show that such services were availed for calibration of the machines and requested for remand of the matter. 2.7 Under general category of other services, the authorities below have rejected the service tax credit on manpower supply agency service used for data entry. He submitted that the appellant would be able to produce such documents and requested for remand of the matter. 2.8 In respect of manpower for shivtej, he submitted that the appellant has already reversed and is not contesting the same. In respect of maintenance and repair services, he submitted that the said services were actually works contract service which were availed by the appellant for repair, renovation work of the premises and would be eligible for credit. However, the appellant have now reversed the same and is not contesting. In addition, he pleaded that the penalties imposed in respect of the said services may be set aside. 3. On behalf of Revenue, ld. AR Shri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e appellant sends the samples to foreign buyers, they would be able to procure orders from such foreign buyers. However, the said invoices were not produced before the adjudicating authority. Therefore, I deem it fit to remand the said issue to the adjudicating authority who shall verify the invoices and consider the discussions made with regard to this issue. 5.2 With regard to audit fee, it is seen that the authorities below have allowed credit in respect of service tax paid on charges paid to the auditor. The appellant is contesting the service tax paid on the conveyance charges for the auditor. However, he has not furnished any document to show that the vehicle used for conveyance of the auditor was registered in the name of the service provider. For this reason, I hold that the authorities below have rightly rejected the same. 5.3 The manpower used for TDS entry is to the tune of ₹ 1,823/-. Since the appellant has to do the work of deducting the tax at source, manpower have been used for such work (data entry), I am of the view that the disallowance of credit is unjustified and requires to be set aside, which I hereby do. 5.4 The appellant has availed credit on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y. Since the service is connected with accounting and falls within the inclusive part of input services, I am of the view that the said services would be eligible for credit if the appellant produces the invoices disclosing the payment of service tax. The said issue is also remanded to the adjudicating authority. 5.9 The credit in respect of manpower (shivtej) is not contested by the appellant and therefore upheld. The appellant is also not contesting the credit on works contract service used for repair and maintenance. 5.10 The ld. counsel has also argued that during the relevant period, the issue as to eligibility of rent-a-cab service as well as construction service in respect of maintenance and renovation (WCS) was under confusion being interpretational issue, the penalties may be set aside. I find that there were doubts as to whether rent-a-cab services are eligible for credit after 1.4.2011. So also there were divergent views as to whether WCS used for repair and renovation is eligible for credit. Being interpretational in nature, I set aside the penalties in respect of these services including manpower (Shivtej). 6. In the result, the impugned order is modified to t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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