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TMI Blog2024 (10) TMI 287X X X X Extracts X X X X X X X X Extracts X X X X ..... involved in the present case, was allowed. It is also found that the department has accepted the said order of the ld. Commissioner and has not filed any appeal against the said order, which is evident from the RTI reply provided by CPIO in respect of the status of the said order. Once the department has accepted the order of the ld. Commissioner for the subsequent period, then, in that case, the department cannot take contrary stands in proceedings on the same issue for the same assessee. C F agents services - HELD THAT:- The Commissioner for the subsequent periods, has discussed all the clauses of the Agreement between the appellant and C F agents and has come to the conclusion that the services provided by the C F agents to the appellant are input services used in relation to the manufacture of the finished goods. This issue is decided in favour of the assessee. Rent of Bangalow - HELD THAT:- This has been held as an input service as held in various cases. Rent of Office/Godown - HELD THAT:- This has held to be input service in various decisions as well. Brokerage Charges and Maintenance Repairs of Computers and Air Conditioners - HELD THAT:- These services have also been held t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry. The appellant availed the Cenvat Credit of the duty paid on inputs and capital goods and service tax paid on various input services during the relevant period. 2.2 Audit of the appellant was conducted and consequent to the audit, show cause notices dated 07.01.2011 and 21.07.2011 were issued to the appellant on the allegation that the appellant has wrongfully availed the Cenvat Credit of service tax paid on the services of Clearing Forwarding Agents (in short C F Agents ), rent of bungalow, brokerage charges to arrange residential accommodation, rent of office/godown after sale and maintenance repair of computers and air conditioners for the period December 2005 to August 2010 and September 2010 to May 2011 respectively. Accordingly, the credit of the tax paid on the input services was proposed to be denied on the ground that the input services had no nexus or relation with manufacturing of dutiable goods by the appellant. Also, a personal penalty was proposed to be imposed on appellant no.2. 2.3 The appellant filed the detailed replies to the said SCNs and after following the due process, the ld. Commissioner disallowed the credit and confirmed the demands alongwith interest a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pellant are input services and the same were used in relation to the manufacture of final products and clearance of the final products from/upto the place of removal. She further submits that the inclusive part of the definition of input services as provided under Rule 2(l) of the CCR, 2004, specifically covers the activities related to business i.e. any service in relation to business of manufacturing of final products would be covered within the ambit of inclusive part of the definition. As regards each impugned service, the ld. Counsel has given full justification. 4.4 As regards the C F Agents service, the ld. Counsel submits that the appellant has availed the C F agents services for clearing, forwarding, storage and distribution of the goods manufactured by the appellant. She refers to the various clauses of the Agreement with C F agents and under the Agreement, the scope of activities performed by such agents includes the collection of the goods dispatched by the appellant after due checking and inspection of the same, transportation of the same with sufficient safeguards to the warehouse provided by the appellant, stocking of the goods in the warehouse, issuance of the goods ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sed for storage of manufactured products and sale thereof by C F Agents as per the directions of the appellant. The godowns are integral for storage of goods dispatched from the factory of the appellant and thus are indirectly used in relation to manufacturing of the final products. For this submission, reliance is placed on the following cases: Barmalt (India) Pvt. Ltd. Vs Commissioner of C. Ex., Delhi- III - 2015 (38) S.T.R. 882 (Tri. - Del.) Cantabil Retail India Ltd. Vs Commissioner of Central Excise, Delhi- I - 2018 (17) G.S.T.L. 275 (Tri. - Del.) 4.7 As regards Brokerage charges, the ld. Counsel submits that Brokerage charges are paid for finding suitable accommodation for stay of employees and management. These expenses are commercially expedient for the effective running of business and thus are being used in relation to the manufacture of the final products and hence covered within the ambit of the main clause of the definition of 'input services'. For this submission, she relies on the following cases: Axis Bank Ltd. vs. Commissioner of Service Tax Mumbai and vice versa - 2017 (3) G.S.T.L. 427 (Tri. Mumbai) affirmed by Bombay High Court in 2019 (369) E.L.T. 583 (B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... i. Mumbai) d) Bengal Iron Corporation vs. Commercial Tax Officer 1993 (66) ELT 13 (SC) e) Elson Machines Pvt Ltd vs. Collector of CE 1988 (38) ELT 571 (SC) f) State of Gujarat vs. Arcelor Mittal Nippon Steel India Ltd 2022 (379) ELT 418 (SC) g) IFB Industries Ltd vs. CCE ST, Bangalore-I 2017 (4) GSTL 366 (Tri. Bang.) h) CCE vs. Gujarat Heavy Chemicals Ltd 2011 (22) STR 610 (Guj.) i) EIMCO Elecon (India) Ltd vs. CCE ST, Vadodara-I 2017 (52) STR 316 (Tri. Ahmd.) j) CCE, Nagpur vs. Manikgarh Cement 2010 (20) STR 456 (Bom.) k) CCE, Trichy vs. Madras Cement Ltd 2019 (370) ELT 568 (Tri. Chennai) Ld. AR has further submitted that the appellant is not entitled to the Cenvat Credit of service tax paid on various input services as the said services are received by the appellant after sale/clearance of the goods. He furthers submits that the said services do not have any nexus or relation to the manufacture of dutiable goods. 6. We have considered the submissions made by both the parties and perused of the material on record; and have also gone through the various decisions relied upon by both the parties. We find that it is not in dispute that for the subsequent periods, two show cause notic ..... X X X X Extracts X X X X X X X X Extracts X X X X
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