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TMI Blog2019 (11) TMI 232X X X X Extracts X X X X X X X X Extracts X X X X ..... lity of cenvat credit of duty paid on inputs, capital goods and input services. On scrutiny of accounts of the assessee for the period from November 2010 to May 2015 and June 2015 and June 2017, it appeared that they have wrongly availed credit of input services under the category of "Sales Promotion Service / Customer Care Services". Show cause notices were issued to the appellant proposing to disallow the credit and also for recovery of the same along with interest and to impose penalties. After due process of law, the original authority confirmed the demand, interest and imposed penalty which was upheld by the Commissioner (Appeals). Hence these appeals. 3.1 On behalf of the appellant, Ld.Counsel Shri Raghavan Ramabhadran appeared and a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nters. IV. Such other services as may be mutually agreed upon by the Parties from time to time." As per the agreement, Rs. 12 lakhs is for sales promotion, Rs. 3 lakhs for customer care services along with other such services and Rs. 3 lakhs for training services. The department has confused the amounts stated in the agreement which can be seen from the discussion of original authority in para 4.6 of the OIO wherein it is observed that though the amount fixed for sales promotion is Rs. 12 lakhs, invoices show only Rs. 3 lakhs. Ld. counsel pointed out that the appellant has six units which are situated in various parts of the country. The amounts stated in the agreement is for providing service to all these units. There was no dispute fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and feedback are used to train the customer care personnels. Thus the customer care service has direct nexus with the manufacturing activity of the appellant. 3.3 The department has issued SCN 8.12.2015 invoking extended period of limitation. Though in the SCN, it is stated that appellant has suppressed facts, there is no evidence adduced by the department to establish the same. Further in the previous audit conducted by the department, no objection was raised with regard to the credit availed on the very same input services. The audit which culminated in the issuance of the SCN dt. 08.12.2015 took place in 2012 and the SCN has been issued much belatedly only in 2015. He therefore submits that there is no ground for invoking extended perio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of credit on input services which are in the nature of sales promotion service / customer care service. It has to be noted that the period involved is from November 2010 to May 2015 and June 2015 and June 2017. Thus period involved is after 1.4.2011 as well as prior to this date. For the period prior to 1.4.2011 the definition of 'input services' included the words "activities relating to the business" and therefore the services availed by the appellant would undoubtedly be eligible for credit prior to 1.4.2011. 7. The arguments put forward by both sides have to be considered mainly for the period after 1.4.2011. The Ld. counsel for the appellant has referred to the agreement entered into between the service provider and the appellant whic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble for the inherent manufacturing defect of the product. It is not only in cases where express warranty is offered that the manufacturer is liable for the defects, as argued by the Ld.AR for department. Every product has an implied warranty that it will satisfy the specification as mentioned and also that it will conform to certain standard in regard to the consideration paid. Thus a manufacturer is liable for the defect of the product even though there is no express warranty offered. Further, a consumer has a right to be informed and also right to seek redressal. To protect the rights of the consumers, the provisions in Legal Metrology (Packaged Commodities) Rules, 2011 has provided that every packaged commodity shall declare the name of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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