Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding
  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram

Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2017 (1) TMI AT This

  • Login
  • Referred In
  • Summary

Forgot password       New User/ Regiser

⇒ Register to get Live Demo



 

2017 (1) TMI 646 - AT - Central Excise


Issues:
1. Eligibility of input services availed by the appellant during June 2011.

Detailed Analysis:

1. The issue in appeal concerns the eligibility of certain input services availed by the appellant in June 2011. The lower authority allowed cenvat credit for security services but denied credit for other input services based on Rule 2(l) of Cenvat Credit Rules, 2004. The Commissioner (Appeals) partially allowed further credit for certain input services but denied the remaining disputed credits. The appellant appealed to the forum seeking a resolution.

2. During the hearing, the appellant's counsel argued for the eligibility of various input services. These services included construction of an overhead tank, AMC for attendance monitoring machine, factory inspection building stability certificate, PF audit fees, annual listing fee, capital civil sundry work, transport and loading charges, labor charges for fabrication and erection of DSL system, professional services charges for tax benefits, AMC charges for weighing machine, renewal of audit quality management system, AMC charges for photocopier, and depository service. The counsel contended that these services were essential for the business and should not be denied credit.

3. The opposing party's counsel argued against the appeal, stating that the Commissioner (Appeals) had thoroughly analyzed the eligibility of the input services in question.

4. After hearing both sides and reviewing the facts, the tribunal noted that the disputed input services were availed after April 1, 2011, when the definition of "input services" under Rule 2(l) of CCR 2004 was amended. The tribunal found that most of the services, except for a few, were related to the business or manufacturing activities of the appellant and were not excluded by the clauses in the Explanation to Rule 2(l). Therefore, the tribunal allowed the appeal for these services as eligible input services.

5. However, for services related to construction, execution of works contract, civil structures, or laying foundations for capital goods, which were specifically excluded under the Explanation to Rule 2(l), the tribunal rejected the appeal as these did not qualify as eligible input services.

6. Regarding transport and loading charges, the tribunal found that further clarification was needed on the individual breakdown of these charges. The matter was remanded to the original authority for a detailed reconsideration based on statutory provisions, circulars, and legal precedents.

7. The tribunal set aside the penalty imposed under Rule 15(1) of the Cenvat Credit Rules, considering the interpretational nature of the dispute.

8. In conclusion, the appeal was partly allowed, with certain input services deemed eligible while others were rejected based on the specific provisions of Rule 2(l) of the Cenvat Credit Rules, 2004.

 

 

 

 

Quick Updates:Latest Updates