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TMI Blog2024 (12) TMI 5X X X X Extracts X X X X X X X X Extracts X X X X ..... relating to business , for consideration of certain taxable services as input service , for the purpose of availment of CENVAT Credit of Service Tax paid thereon. Since the appellants are a corporate entity and maintained adequate records to demonstrate that the expenses incurred were in context with the services used by them for their business activities, the disputed services received prior to 01.04.2011 should be considered as input service for the purpose of taking of CENVAT Credit of Service Tax paid thereon. The definition of input service was substituted by Notification No. 03/2011-C.E. (N.T.) dated 01.03.2011 w.e.f. 01.04.2011. The effect of the substituted definition is that the phrase means was enumerated in the said definition clause, which covers any services used directly or indirectly, in or in relation to manufacture of the final products and clearance of the finished products upto the place of removal for consideration as input service . Since such definition clause is very wide and cover various services for consideration as input service, narrow interpretation cannot be placed to deny the benefit of CENVAT Credit availed by the appellants on the disputed services ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pute, the appellant had received various taxable services namely, Air Travel Agent, Architect, Business Support Service, Clearing Forwarding, Club Membership, Telephone, GTA, Housekeeping, Design Development, Chartered Accountant Services, Sponsorship services, Outdoor Catering services etc., and availed the CENVAT Credit of Service Tax paid by the service providers and reflected in the invoices issued by them. Taking of CENVAT Credit was disputed by the Department on the ground that the disputed services are not in conformity with the definition of input service as per Rule 2(l) of the CENVAT Credit Rules, 2004. The show-cause proceedings initiated by the Department for different periods, were adjudicated upon by the learned Commissioner of Central Excise, Mumbai- III, vide Order-in-Original No. 17-27/COMMR/M-III/KCG/2014-15 dated 26.11.2014, wherein proposed CENVAT Credit demand of Rs. 9,49,87,048/- was confirmed along with interest and also equal amount of penalty was imposed on the appellant under Rule 15(2) of CENVAT Credit Rules, 2004 read with Section 11AC of the Central Excise Act, 1944. Feeling aggrieved with the impugned order dated 26.11.2014, the appellants have preferr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... manufacturing units (credit amounted to Rs.59,80,742/-) ii.) Credit pertains to transportation of finished goods upto the premises of C F Agent Rs. 65,673/- (Detailed bifurcation provided at page 567 and 568 of the appeal memo) (Refer submission in para 9 infra .) 1. CBEC Circular No. 1065/4/2018CX, dated 8.6.2018 2. M/s. CEAT Ltd. Vs. CCE 2022 (10) TMI 1213 - CESTAT MUMBAI 3. Judgments in sr. no. 24 to 26 of case law compilation 4 Club or association membership 52,57,194 4,90,751 Appellant is a member of Automotive Tyre Manufacturers Association (ATMA), All India Rubber Industries Association (AIRIA), Confederation of Indian Industry (Cll). The said associations assist their members by providing technical data i.e. prices of natural rubber and other raw materials, market conditions etc. 1. ITC Ltd. Vs. CCE 2018 (12) GSTL 182 (T) 2. CCE Vs. Nash Industries 2016 (45) STR 233 (T) 5 Cargo Handling services 17,73,493 - Appellant availed cargo handling services such as loading, unloading, booking of space for container, port charges, documentation etc. for the purpose of export of final products manufactured by them. CCE Vs. Inductotherm India P. Ltd. 2014 (36) STR 994 (Guj.) 6 Business ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of designing tyre mould which is used in manufacture of tyres. Without use of said service, manufacturing of finished goods is not possible. Therefore, it has direct nexus with manufacture of finished goods. 13 Architect services 82,400 - Appellant availed architect service in relation to repair and maintenance of office of Appellant situated at Worli, Mumbai. Maruti Suzuki India Ltd. Vs. CCE 2017 (47) STR 273 (T) 14 Outdoor Catering 16,252 - Services were availed for the period prior to 1.4.2011. Therefore, services were covered under the inclusive portion of definition of input service. Toyota Kirloskar Motor Pvt. Ltd. Vs. CCT 2021 (50) GSTL 286 (Kar.) Affirmed by the Supreme Court in 2021 (55) GSTL 129 (SC) 15 Interior Designer 10,503 - Services are indirectly used in manufacture of final products. Bharat Fritz Werner Ltd. Vs. CCE 2011 (22) STR 429 (T) 16 Cable Operator 2,065 3,294 Credit reversed vide Debit entry no. 4323 dated 20.2.2015 17 Rent-a-cab - 65,415 Credit reversed vide Entry No. 1168 dated 1.7.214 and 4324 dated 20.2.2015 18 No specific category provided for this amount in the notice 11,96,712 Refer para 12.1 and 12.2 infra. Total 9,41,29,010 8,58,038 4. On the othe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of the final product, whether directly or indirectly, the same should be considered as input service for the purpose of availment of CENVAT Credit of Service Tax paid on those services. It is not a case of Revenue that the disputed services are categorized in the exclusion clause provided in the definition of input service . We find that the judgments relied upon by the learned Advocate in the table above squarely support their case for consideration of the disputed services as input service . Therefore, we are in agreement with the contention of the appellants that the CENVAT Credit availed by them on the disputed services are in fact, input services and denial of the benefit of such credit in terms of Rule 14 of the CENVAT Credit Rules, 2004 read with Section 11A of the Central Excise Act, 1944, shall not stand the scrutiny of law. However, considering the submissions of the appellant that they are not contesting the credit of Service Tax paid by them on cable operator service and rent-a-cab service, we hold that the appellants are liable to reverse the CENVAT Credit amounting to Rs.68,709/- availed on such services. Learned Advocate fairly concedes that the said amount of Rs.6 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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