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TMI Blog2023 (6) TMI 457X X X X Extracts X X X X X X X X Extracts X X X X ..... management, logistics, infrastructure support, business strategic planning, research & development, auditing, electronic data processing, travelling, entertainment, etc., in order to achieve economies of scale and allow group companies to specialize. Accordingly, ABMCPL obtained Service Tax registration under the category of 'Business Support Service' to be provided to the group companies and duly discharged Service Tax thereon. At the end of each month, ABMCPL issued tax invoices charging its total cost on the group companies in the agreed ratio and collected Service Tax under the head of 'Business Support Service' in the tax invoices. The Service Tax collected was duly deposited with the Government and reflected in the periodical returns. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) 'means Clause'; and (2) 'includes clause'. With effect from 01.04.2011, a third limb being 'excludes clause' was added to the definition. They submitted that BSS provided by ABMCPL is covered in the 'means clause' since it is used in relation to manufacture of final products by the Appellant. In the absence of ABMCPL, the Appellant would have to perform such activities by themselves and incur the applicable expenses on their own. Since it would not be possible for the Appellant to carry on the business without information technology team, legal team, human resource team, administrative team and managerial team, they utilize the services of ABMCPL. In fact, in addition thereto, each group company would have to incur such expenses by themse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Insurance Co. Ltd. v. Commr. of GST & CE, Chennai [2021 (3) TMI 24 - CESTAT CHENNAI] d. Amara Raja Electronics Ltd. v. CCE, Tirupathi [2016 (43) S.T.R. 601 (Tri.-Hyd.)] e. Sarvesh Refractories (P) Ltd. v. CCE & C. [2007 (11) TMI 23 -Supreme Court)] 6. The Appellant contended that the Department held that ABMCPL does not fit within the definition of ISD as provided under Rule 2(m) of the CENVAT Credit Rules, 2004, merely for the reason that the ABMCPL adopts a particular ratio to allocate the total costs/expenses incurred by it in respect of the common facilities provided to the group companies on cost-to-cost basis. They argued that the impugned order has not only failed to analyze the facts of the instant case, but also failed to anal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re in the knowledge of department, the extended period of limitation is not invocable in the present case and hence the substantial demand covered under the first SCN dated 04.10.2012 is barred by limitation . In this regard, they relied on the decision in the case of Anand Nishikawa Co.Ltd. v. CCE, Meerut - 1005 (188) ELT 149 (SC). As the demand is not sustainable, there is no question of imposition of penalty or recovery of interest from the Appellant. 8. The Ld. Authorized Representative for the Department reiterated the findings of the Adjudicating authority in the impugned order. 9. Heard both sides and perused the appeal records. 10. We observe that the Appellant has provided various services to their group companies to enable them ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... As per the definition of BSS mentioned above, the services rendered by ABMCPL to their group companies would rightly fall under the category of 'Business Support Service'. We observe that ABMCPL has been rightly paying Service Tax under BSS for the services rendered by them to their group companies. The department has also not disputed the payment of service tax by ABMCPL under the category of BSS. 12. The Appellant referred the Board Circular No.102/3/2009-S.T. dated 23.02.2009 and TRU's Letter No. 334/4/2006-TRU, dated 28.02.2006 which clarified the scope of BSS. As per the Board Circular cited above, services which are in the nature of assistance or support provided by the principal to the service recipient would fall under BSS. In the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inputs, accounting, auditing, financing, recruitment and quality control, coaching and training, computer networking, security, legal services etc. 15. Hence the Appellant is entitled to avail the CENVAT Credit of service tax paid on BSS since they have a nexus with the overall business activity of manufacturing final goods and are essential for the day-to-day operations of the Appellant. 16. In view of the above discussion, we hold that the services rendered by the ABMCPL is rightly classifiable under the category of 'Business Support Service' and ABMCPL has rightly paid Service Tax under the said category. The service tax paid by ABMCPL has been rightly distributed to their group companies, including Appellant. 15. The Appellant has rai ..... X X X X Extracts X X X X X X X X Extracts X X X X
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