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TMI Blog2025 (2) TMI 141X X X X Extracts X X X X X X X X Extracts X X X X ..... Commission Charges by Real Estate Agent, Construction Services used by the appellant for design & installation of the factory premises are held as 'input services' and the Cenvat Credit cannot be denied with regard to these services. Invocation of extended period of limitation - HELD THAT:- It is found that it was an interpretational issue and the appellant had a bona fide belief that they were entitled to Cenvat Credit on the input services which were used for the purpose of carrying the business for manufacturing. Further, the department has not established any of the ingredients such as fraud, collusion, wilful misstatement or suppression of facts or contravention of any of the provisions of the Act or Rules with intent to evade the payment of tax, which are required for the purpose of invocation of extended period. Further, it is found that only during the audit of the appellant, it was discovered the appellant has taken the Cenvat Credit on these impugned services, which also shows that there is no intention to evade payment of tax; therefore, the entire demand is also barred by time. Interest - penalty - HELD THAT:- The question of interest and penalty does not arise when t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eceived by the Appellant for design, installation etc. at factory premises. 2008-09 1,75,07,301 2010-11 60,323 Total 1,75,67,624 Input services not used in the manufacturing premises and not used in the manufacturing process. 2010-11 20,579/- Total 1,89,67,111/- Aggrieved by the said order, the appellant preferred the present appeal before us. 3. Heard both the parties and perused the material on record. 4.1 The learned Counsel for the appellant submits that the impugned order is not sustainable in law and is liable to be set aside as the same has been passed without properly appreciating the facts and the law and binding judicial precedents on identical issue. 4.2 The learned Counsel further submits that the appellant is eligible to the Cenvat Credit on the input services used by it directly or indirectly in the manufacturing process. He further submits that definition of 'input services' prior to 01.04.2011 as provided under Rule 2(l) of the Cenvat Credit Rules, 2004 provides that the input services include services used by the manufacturer, directly or indirectly, in the manufacturing process. The definition of input services is an inclusive definition having a wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment of residential accommodation for its employees for business purposes of the appellant who has substantial contribution to the company by managing production and quality for line setup and were key personnel for setting up the manufacturing unit of the appellant and carrying forward the business of manufacture. Hence, any service tax paid on the said activity shall be considered as being used indirectly in relation to manufacture or as part of business activity for promoting the business. He further submits that the appellant has also produced the invoices of the vendors who procured the services for the appellant. 4.5 As regards the denial of Cenvat Credit on Construction service used for setting up the factory, the learned Counsel submits that the appellant is engaged in the manufacture and sale of the products consisting of exhaust system components used in motor vehicles by Maruti Udyog and has entered into a contract with SMCC Construction India and the scope of work included Civil, Electrical, Mechanical, Fire Fighting, Plumbing & External Works etc as reflected in the invoiced produced on record. He also submits that the manufacturing of the final product could not have ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... services': Input Service Judgments Canteen expenses incurred for providing canteen services to the employees in the factory. (1) NGK Spark Plugs India Pvt. Ltd. vs. CCE, Delhi-III 2023 (9) TMI 642 - CESTAT CHANDIGARH. (2) Kansal Nerolac Paints Ltd vs. Commissioner of Central Excise, Delhi-III2024 (3) TMI 1038 - CESTAT CHANDIGARH (3) CCE, Nagpur vs. Ultratech Cement Ltd. 2010 (10) TMI 13 - BOMBAY HIGH COURT. Hospitality Charges incurred to provide leased accommodation to Expats/employees. & Commission charged by real estate agent for assistance in procuring leased accommodation for its expats/employees. 1) Good Year India Ltd vs. Commissioner of Central Goods & Service Tax, 2024 (10) TMI 287 - CESTAT Chandigarh (2) 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 (Bom.)]. (3) Titan Industries Ltd. vs. Commissioner of Service Tax, Chennai, 2018-TIOL-2052-CESTAT-MAD. (4) Honda Motorcycle & Scooter (I) Pvt. Ltd. vs. Commr. Of C. Ex., Delhi-III- 2016 (45) S.T.R. 397 (Tri. - Chan.). (5) Yazaki India Pvt. Ltd. vs. C.C.E. Ahmedabad2018 (3) TMI 1052 - CESTAT A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s include services used by the manufacturer, directly or indirectly, in the manufacturing process. The said definition has been widely interpreted by various courts to include all services used in relation to the manufacture of final products. 7. Further, we find that each of the input services involved in the present case has been held to be 'input service' by various decisions cited above, wherein it has been held that the services such as Outdoor Catering/Canteen Services, Hospitality Charges & Commission Charges by Real Estate Agent, Construction Services used by the appellant for design & installation of the factory premises are held as 'input services' and the Cenvat Credit cannot be denied with regard to these services. 8. As regards the invocation of extended period of limitation, we find that it was an interpretational issue and the appellant had a bona fide belief that they were entitled to Cenvat Credit on the input services which were used for the purpose of carrying the business for manufacturing. Further, the department has not established any of the ingredients such as fraud, collusion, wilful misstatement or suppression of facts or contravention of any of the prov ..... X X X X Extracts X X X X X X X X Extracts X X X X
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