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TMI Blog2019 (4) TMI 132X X X X Extracts X X X X X X X X Extracts X X X X ..... ble expenses incurred by them on behalf of their clients - such a service cannot become an input service for the Custom House Agent services provided by the appellant. The appellant had wrongly availed the CENVAT Credit on these two input services and the same needs to be recovered from them. Since the appellant has availed CENVAT credit on the services which, prima-facie, are not at all covered the definition of ‘input services’ under CCR 2004 and they have not included the value of these services in their output services, the appellant has taken a credit in violation of the Rules with the intent to evade payment of service tax. Therefore, the extended period of limitation was correctly invoked. The demand is sustainable along with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this factual scenario, the rental charges of godowns and stevedoring charges cannot be considered as input services under CCR 2004 for the appellant. Therefore, the department sought to deny the CENVAT Credit on these services and recover the same under Rule 14 of CCR 2004, read with Section 73 of the Finance Act, 1994. It was also proposed to recover interest under section 75 and impose equal amount of penalty under Rule 15(3) of CCR 2004 read with Section 78 of the Finance Act, 1994. After following due process, the lower authority, vide their Order-in-Original No. V/15/05(ST)/2011- Adj.VSP II, dated 22.11.2011, confirmed the demand and imposed penalties as proposed. Aggrieved, the appellant preferred an appeal before the first appellate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at stevedoring and godown rent are reimbursable expenses as they do not directly pertain to the Custom House Agent services rendered by them although they provide/facilitate these services also to their clients. The next question is whether such reimbursable expenses become input services for the output services rendered by the appellant. Rule 2(l) of CCR 2004 defines input services as any service (i) used by a provider of taxable service for providing the output service; or (ii) used by 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. 5. In the instant case, the taxable service rendered by the appellant is Custom House Agent se ..... X X X X Extracts X X X X X X X X Extracts X X X X
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