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TMI Blog2024 (10) TMI 1255X X X X Extracts X X X X X X X X Extracts X X X X ..... to the restrictions placed by the CCR 2004. Credit of service tax of duty paid towards mandatory services availed by the appellant under various Acts or which are mandatory for manufacture of goods, would hence continue to be eligible for being taken as credit, as without availing the said services, the goods cannot be manufactured, without facing penal action or other disruptions. So they are integrally connected with the ultimate production of goods/ chemicals manufactured in their factory. Moreover, services availed are not used primarily for private use or consumption of any employee and the duty paid forms a part of the final price of the product on which tax is paid. In the KAKINADA SEAPORTS LTD VERSUS COMMISSIONER OF CENTRAL EXCISE, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g, medical centre service and membership subscription of club. Since it appeared that the services were not eligible capital services, a Show Cause Notice dated 24.10.2013 was issued to the appellant proposing to deny the above-mentioned input service credit. After due process of law, the learned Original Authority confirmed an amount of Rs.33,267/- alone under Rule 14 of the CENVAT Credit Rules, 2004 (CCR 2004) involved on medical centre service and membership subscription of club and allowed the balance credit on other services. He also imposed a penalty of Rs.16,634/- under Rule 15(2) of the CCR 2004 read with sec. 11AC(1)(b) of the Central Excise Act, 1944. Against such order, the appellant preferred appeal before learned Commissioner ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... safeguarded in the manner provided. Therefore, the medical-aid centre provided by the appellant to their employees is an activity in relation to manufacture of finished goods and hence covered under the definition of input service because, the appellant cannot engage in manufacture without complying with these laws. She placed reliance in this regard on the judgments in Jaypee Sidhi Cement Plant Vs. CCE Bhopal [2015 (37) S.T.R. 397 (Tri. Del.)]; Kakinada Seaports Ltd., Vs. CCE [2015 (40) S.T.R. 509 (Tri. Ban.] and M/S Gujarat State Fertilizers Chemicals [2015 (10) TMI 1693 - CESTAT AHMEDABAD] , hence the findings in the impugned order is incorrect and untenable. With regard to Membership subscription service she stated that the impugned or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s no provision in the said return to show the description of input services with respect to which the credit was availed, mere failure to disclose that which is not required by the returns cannot be construed as suppression of facts. The Ld. Advocate submitted that this itself proves there is no suppression or intent to avail ineligible credit as alleged. She placed reliance on the following cases: Moderin Petrofils Vs. CCE, Vadodara., 2010 (20) STR 627 (Tri. Ahmd); CCE, Jaipur I Vs. Pushpa Enterprises., 2011 (22) STR 299 (Tri. Del.); CCE, Indore Vs. Medicaps Ltd., 2011 (24) STR 572 (Tri. - Del.); Parekh Plast (India) Pvt. Ltd Vs. CCE, Vapi., 2012 (25) STR 46 (Tri. - Ahmd); CCE, Kolkatta VI VS. ITC Ltd., 2013 (291) ELT 377 (Tri. - Kolkatta) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... integrally connected with the ultimate production of goods/ chemicals manufactured in their factory. Moreover, services availed are not used primarily for private use or consumption of any employee and the duty paid forms a part of the final price of the product on which tax is paid. 6. I find that similar issues came to be examined by this Tribunal; (a) In the Kakinada Seaports Ltd., Vs. CCE [2015 (40) S.T.R. 509 (Tri. Ban.] , the Division Bench examined the eligibility of taking cenvat credit on health care with ambulance facility, during the period 01/07/2012 to 31/03/2013. It was held as under; 6.1 It was submitted that healthcare with ambulance facility would be available within the port area and this being a mandatory requirement, th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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