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TMI Blog2021 (3) TMI 1116X X X X Extracts X X X X X X X X Extracts X X X X ..... aid in the manufacturing activity in one way or the other. During the disputed period, ranging from February 2013 to June 2017, the appellant was availing certain input services and was also availing credit of the service tax paid on the same. The Department entertained the view that the appellant is not entitled to avail credit on certain input services as they do not qualify as input service as defined under Rule 2(l) of CCR, 2004. The detail of the disputed services and the ground for disallowing the credit thereof is given in the table below: Disputed period Category of service Amount of credit Reasons of denial in the impugned order February 2013 - December 2015 Erection, Commissioning and installation (crane Services) 9,80,256 Credit availment does not relate to Erection, Commissioning and Installation of any specific capital goods. February 2013 - December 2015 Event Management Services 8.20,817 No nexus with output service or manufacture February 2013 - December 2015 and January 2016 - June 2017 Management, Maintenance and Repair 10,88,889 Since diesel is a consumable, credit on the same cannot be allowed. February 2013 - December 2015 and January 2016 - J ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as the same has been passed without properly appreciating the definition of Input Service and the various judicial precedents on these disputed services. She further submitted that as per Rule 3 of CCR, a manufacturer or service provider is eligible to avail credit of duty paid on input or capital goods or input service and the impugned services availed by the appellant are all used in relation to manufacture and have sufficient nexus with the appellant‟s manufacturing activity and is squarely covered under the definition of Input Service provided under Rule 2(l)(ii) of CCR. Learned Counsel made specific submission on each of the disputed services which are as under: (i) Erection Commissioning and Installation Service- As far as this service is concerned, learned Counsel submitted that the appellants have availed services relating to crane for loading, unloading and shifting of dies, moulds and machines within the factory and not for erection, commissioning and installation as is the Department‟s understanding. She further submitted that the appellant is engaged in the manufacture of automobiles, heavy machines and goods are required to be moved from time to time. Su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent, Maintenance and Repair Services- As far as this service is concerned, learned Counsel submitted that under this service, the appellant has availed the services of management, maintenance and repair for the DG sets installed in its premises during the period February 2013 to December 2015 for generation of electricity for carrying out the manufacturing activity. She also submitted that vendor raised two separate bills-one pertaining to hiring of DG sets and other pertaining to running expenses and maintenance charges for DG sets which is based on the diesel consumed and service tax is charged on both invoices. However, the Commissioner (Appeals) has disallowed the credit on service tax paid on diesel charges on the ground that the same is not an input, input services and capital goods but a consumable. She also submitted that the Department has not disputed the credit availed on hiring of DG sets. Consequently, the Department should allow the credit of service tax paid on running expenses and maintenance charges as diesel which is an input and is essential for the functioning of DG sets. (iv) Auctioneering Service- As far as this service is concerned, the learned Counsel subm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d use it in relation to manufacture and the appellant has been able to establish sufficient nexus with the manufacturing activity as far as cranes services are concerned which the Department has misunderstood as erection, commissioning and installation service. Further, I find that this service of hiring of crane has been held to be Input Service in a manufacturing unit like the appellant as held in the decisions cited supra by the appellant. Further, as far as Event Management Service is concerned, these services have been used for conducting the inaugural ceremony of the newly set up manufacturing unit where the management team travel to the factory premises and it also involved advertisement, designing, promotional video and pandal services wherein not only the employees of the company but its customers also attended and this service has also been held to be Input Service in the appellant‟s own case by the decision of the CESTAT, Chandigarh and various other decisions relied upon by the appellant cited supra. Further, as far as Management, Maintenance and Repair Service is concerned, this pertains to the management, maintenance and repair of DG sets which is required for g ..... X X X X Extracts X X X X X X X X Extracts X X X X
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