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TMI Blog2025 (3) TMI 259X X X X Extracts X X X X X X X X Extracts X X X X ..... the place of removal based on the facts of each case, considering the Supreme Court's judgments and the Board's Circular.' - Thus, the appellant is entitled for availment of CENVAT Credit on GTA services and clearing and forwarding agency service in case the good are sold on FOR basis. Accordingly, the CENVAT Credit cannot be denied. Whether proceedings should have been initiated against the Input Service Distributor (ISD) instead of the appellant for the alleged incorrect availment of CENVAT Credit? - HELD THAT:- The appellant has availed CENVAT Credit on the basis of invoices issued by their ISD and admittedly, no proceedings had been initiated against the ISD. In these circumstances, the CENVAT Credit availed at the end of the appellant cannot be denied, as held by this Tribunal in the case of Indsil Energy Electrochemicals Ltd. v. Commissioner of C.Ex. and S.Tax, Raipur [2016 (9) TMI 944 - CESTAT NEW DELHI] - the CENVAT Credit in respect of the said input services cannot be denied to the appellant. Conclusion - The appellant had correctly taken CENVAT Credit and the denial of CENVAT Credit is therefore not sustainable. Accordingly, no penalty is imposable on the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nship with the manufacturing activity and have been received beyond the place of removal i.e., factory gate. Therefore, the GTA services do not qualify as 'input services'. b. The other services have no nexus with the manufacturing activity since such services were not received by the Appellant, but by the other offices in Kolkata. c. The Appellant did not disclose the details of the input services wise credit in the ER1 return, thus suppressing the fact of availment of such incorrect CENVAT Credit. (v) The Appellant filed detailed replies to the underlying SCNs and reiterated such submissions at the time of the personal hearing to substantiate the eligibility of CENVAT Credit of all such services. (vi) However, without considering such replies, the Ld. Commissioner issued the impugned orders to confirm the proposed demand based on the following findings: a. The GTA services are availed for transportation of finished goods from the factory gate to customer's premise has no relationship with the manufacturing activity and have been received beyond the place of removal i.e., factory gate. This is because, the goods were transported at the carrier's risk and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ions: - i. Deepak Fertilizers & Petrochemicals Corpn. Ltd. v. CCE, Belapur [2013 (32) STR 532 (Bom.)] ii. Orient Paper Mills v. CCE & ST, Raipur [2016 (45) STR 178 (Tri. - Del.)] 4.2.1.The appellant has also made the following submissions in respect of the remaining input services which are mentioned below : - Input Service Eligibility Commission Agency Services Used for procuring orders from the open market, where the agents promote the Appellant's goods to prospective customers by undertaking the required marketing activities [CCE v. Ambika Overseas, 2012 (25) STR 348 (P&H)] Advertisement & Sponsorship Used for maximizing sales, publicity, brand building, etc.. [Greaves Cotton Ltd. v. CCE, 2015 (37) STR 395 (T)) Manpower recruitment Used for employing staff and workers for the essential positions available with the Appellant [HCL Technologies v. ССЕ, 2014 (40) STR 1124 (1)) Business Support Services ABMCPL being a group company, provides support services in the areas of consultancy, human resources, legal, management etc. [Hindalco Industries Ltd. v. CCE, Kolkata-II, 2023 (6) ΤΜΙ 457-CESTAT Kolkata] Insurance Used for arranging a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t services distributed by the ISDs. 4.3. Moreover, the Ld. Counsel for the appellant points out that proceedings regarding eligibility of CENVAT Credit ought to have been initiated against the ISD. In the present case, proceedings having not been initiated against the ISD, it is contended that the CENVAT Credit availed by the appellant on distribution by the ISD cannot be denied. To support this contention, he has relied on the following case-law : - i. Castrol India Ltd. v. CCE, Kolkata-VI [2024 (6) TMI 761 - CESTAT, Kolkata] ii. Indsil Energy Electrochemicals Ltd. v. CCE & ST, Raipur [2016 (9) TMI 944 - CESTAT, New Delhi] 5. On the other hand, the Ld. Authorised Representative of the Revenue supported the impugned orders. 6. Heard the parties and considered their submissions. 7. We find that the main issue in this case is whether the appellant is entitled to CENVAT Credit in respect of GTA services and clearing and forwarding agency services in case of FOR destination contracts or not. 7.1. The said issue has been examined by this Tribunal in the case of M/s. The Ramco Cements Ltd. v. Commissioner of C.Ex., Puducherry [2023 (12) TMI 1332 - CESTAT, Chennai (LB)] wherein i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the basis of ISD invoices. I reproduce below the relevant portion of the above decision :- "6. In our considered view, the head office of the appellant, being a registered ISD is eligible to distribute service tax credit to any of their units/factory. On a specific query from the Bench, learned departmental representative informed that there was no proposal or proposition to issue show-cause notice to the input service distributor for wrong availment of Cenvat credit. 7. We find that the view or conclusion arrived at by the lower authority in denying the Cenvat credit is incorrect as there is no dispute of receipt of services. Our views also fortified by the decision of this Bench (supra) [2009 (239) E.L.T. 323 (Tri.-Ahmd.)] wherein this Bench had recorded the following findings : "When we look at the functions of the input service distributor and the documents to be issued by him for passing on the credit, it becomes quite clear that the document issued by him for passing on the credit does not contain the nature of service provided and the details of services. It contains the service provider s details, distributor s details and the amount. Obviously the eligibility or o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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