9911796707
TMI Blog2024 (5) TMI 324X X X X Extracts X X X X X X X X Extracts X X X X ..... e provided - January 2009 to November 2012 - burden to prove on manufacturer. The adjudicating authority has held that the permanent services include ineligible services like supply of electricity, back-up power, steam, supply of water, extending canteen facilities, Effluent Treatment Plant(ETP) charges, potable water supply charges, etc.; hence not input service; accordingly the mark-up fees / milestone fees paid to the Biocon Limited in connection with ineligible permanent services are not covered under the scope of Rule 2(l) of the Cenvat Credit Rules, 2004. HELD THAT:- The reasoning of the adjudicating authority deserves to be rejected on two grounds: on going through the individual services i.e. supply of electricity, back-up power, st ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. Biocon Limited under the Management Consultancy Services during the said period - the impugned order is set aside. Appeal allowed. - HON'BLE DR. D. M. MISRA, MEMBER ( JUDICIAL ) And HON'BLE MRS. R BHAGYA DEVI, MEMBER ( TECHNICAL ) Mr. B. G. Chidananda Urs, Advocate for the Appellant Mr. M. A. Jithandra, Assistant Commissioner ( AR ) for the Respondent ORDER PER : DR. D. M. MISRA These appeals are filed against respective impugned orders passed by Commissioner of Central Excise, Bangalore. Since commons issues involved, all these appeals are taken up together for hearing and disposal. 2. Briefly stated the facts of the case are that the appellants are engaged in the manufacture of excisable goods viz. Industrial Enzymes falling ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ll the services that are required to manufacture of enzymes and additives; the products which were manufactured earlier by Biocon Limited. He has submitted that these services were absolutely required to undertake the manufacturing activity of enzymes and additives. Biocon Limited paid service tax for the bundle of services provided which includes supply of electricity, back-up power, steam, supply of water, extending canteen facilities, Effluent Treatment Plant(ETP) charges, potable water supply charges, etc. under the category of Management Consultancy Services . He has submitted that the adjudicating authority without considering their submission that all these services bundled as Management Consultancy Services under the said agreement ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... learned AR for the Revenue has submitted that the appellant had availed cenvat credit in respect of services relating to supply of electricity, back-up power, steam, supply of water, extending canteen facilities, Effluent Treatment Plant(ETP) charges, potable water supply charges, etc. under the category of Management Consultancy Services. It is not directly or indirectly used in relation to the manufacture of final products; hence not covered under the scope of Rule 2(l) of CENVAT Credit Rules, 2004. Further he has submitted that post-01.04.2011, credit on inputs which cover all expenses relating to business activities cannot be allowed. In support, he has referred to the judgment of the Tribunal in the case of Lafarge India Pvt. Ltd. Vs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arties that certain support services would be provided by the seller Biocon Limited to the appellant. In this regard, the Support Services Agreement dated 18.07.2007 also entered into between the appellant and the seller Biocon Limited. Under the said Support Services Agreement, certain services like supply of electricity, back-up power, steam, supply of water, extending canteen facilities, Effluent Treatment Plant(ETP) charges, potable water supply charges, etc. have been agreed to be provided by Biocon Limited to the appellant described as Permanent Services under the said Agreement. Under the payment terms, the Permanent Services referred to in the Agreement provided by Biocon Limited at actual cost with a fixed mark-up fee described in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in the hands of the receiver i.e. appellant while availing cenvat credit on the said taxable services. This principle has been upheld by the Hon ble Supreme Court in the cases of Sarvesh Refractories (P) Ltd. (supra) and MDS Switchgear Ltd. (supra) which has been followed subsequently by this Tribunal in a series of cases. 7. In view of the above, we do not see any reason to deny the cenvat credit availed by the appellant on Business Support Services received against Support Services Agreement dated 18.07.2007 on which service tax paid by M/s. Biocon Limited under the Management Consultancy Services during the said period. In the result, the impugned orders are set aside and the appeals are allowed with consequential relief, if any, to th ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
