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TMI Blog2024 (7) TMI 683X X X X Extracts X X X X X X X X Extracts X X X X ..... listed in the above table was held to be eligible for credit by the Tribunal, by the Commissioner (Appeals) and by the adjudicating authority as pointed out by the Ld. Counsel. The appellant has given the details of the case law in respect of each input service in the last column of the table. Outdoor catering services - HELD THAT:- It is seen that the services have been availed prior to 01.04.2011. So, also in the case of works contract services/ civil work these are availed for repair and maintenance as well as modernization and not of setting up of a factory. There is no allegation by the department that such civil works were availed for setting up of a factory. All the services are eligible input services. The credit cannot be denied on such vague allegations at the end of the manufacturing unit without disputing the credit availed by the input service distributor. The impugned order cannot sustain and is set aside - appeal allowed. - HON BLE MS. SULEKHA BEEVI. C. S. , MEMBER ( JUDICIAL ) And HON BLE MR. VASA SESHAGIRI RAO , MEMBER ( TECHNICAL ) Ms. S. Sridevi , Advocate , for the Appellant Shri . N. Satyanarayanan , Authorised Representative for the Respondent ORDER Per Ms. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ibutor and they distribute service tax credit to various manufacturing units and erection divisions based on turn over as per Rule 7 (c) or (d) of Cenvat Credit Rules, 2004. These Cost Centres do not have any turnover but only serve the manufacturing units by getting orders from customers, giving guidelines on policy matters to the units, arranging for funds required by the units. 5. The functions of the Coast Centres are as follows:- Corporate office: Control 14 manufacturing units and 4 erection divisions. Undertake guidelines on policy matters to the units, arranging for funds required by the units, finalization of technical collaboration, cash collection and allocation and overall administration. Power Sector Marketing: Submit bid based on tender floated by various developers of power projects, collection of outstanding dues, statutory forms, settlement of contractual issues and closing of contracts. Operation Division: Imports of raw materials and exports of final products. Also collects dues from customers. Industry Sector Marketing: Get orders from various companies and allocate orders to various manufacturing units and Erection divisions of BHEL. Also undertake collection o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction 66E of the Finance Act (hereinafter referred as specified services) in so far as they are used for (a) construction or execution of works contract of a building or a civil structure or a part thereof; or (b) laying of foundation or making of structures for support of capital goods, except for the provision of one or more of the specified services; or (B) Services provided by way of renting of a motor vehicle, in so far as they relate to a motor vehicle which is not a capital goods; or (BA) Service of general insurance business, servicing, repair and maintenance, in so far as they relate to a motor vehicle which is not a capital goods, except when used by (a) a manufacturer of a motor vehicle in respect of a motor vehicle manufactured by such person; or (b) an insurance company in respect of a motor vehicle insured or reinsured by such person; or (C) such as those provided in relation to outdoor catering, beauty treatment, health services, cosmetic and plastic surgery, membership of a club, health and fitness centre, life insurance, health insurance and travel benefits extended to employees on vacation such as Leave or Home Travel Concession, when such services are used primar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by the appellant so as to qualify as input services. 11. The invoice for each service is available at the input service distributor and the credit after having been distributed to the appellant is availed by them. The invoices clearly show the nature of services availed. All these services are used directly or indirectly or in relation to the manufacturing activity and therefore eligible. 12. The Ld. Counsel submitted that in the appellant's own case for earlier period similar show cause notice was issued. The appellant had filed appeal before the Tribunal against the denial of credit and confirmation of demand. The Tribunal vide Final Order No.42996/2018 dated 05.12.2018 had set aside the demand and remanded only two issues for further consideration. It was then noted by the Tribunal that Cost Centres being registered with the Central Excise Department as ISD, the department cannot deny the credit to the unit to which the credits have been distributed in accordance with law. 13. Similarly, in the appellant s own case for different period April 2016 to June 2017 the Commissioner (Appeals) has set aside the demand allowing the appeal filed by the department vide O-I-A No. 12/2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onal authorities. There has been no dispute raised against these Cost Centres (ISDs) alleging that they have availed ineligible credit. 20. The department has sought to deny the credit at the end of the manufacturing unit which has availed the distributed credit. There is no allegation that the provisions of Rule 7 of Cenvat Credit Rules 2004 for distribution of credit has not been complied. The show cause notice is very vague in alleging that the appellant has not established that the credit is utilized for manufacturing activity. 21. When there is no dispute raised by the jurisdictional authorities against the input service distribution centres for availing the credit and distributing the same, the department cannot deny the credit at the end of the manufacturing unit on very vague allegations. The show cause notice does not make any specific allegation with respect to particular input service. 22. In the appellant's own case for a different period the very same issue of disallowing credit at the manufacturing unit distributed by the Cost Centres and has been considered by the Tribunal vide Final Order No.42996/2018 dated 05.12.2018 in Appeal No E/40788/2018. 23. Almost all t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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