TMI Blog2014 (5) TMI 218X X X X Extracts X X X X X X X X Extracts X X X X ..... therefore, we find that there is no scope for interfering with the order of the Tribunal - Decided against assessee. - CEA Nos. 22-24 of 2012 - - - Dated:- 27-6-2013 - D.V. Shylendra Kumar and B.S. Indrakala, JJ. Shri B.N. Gururaj, Advocate, for the Appellant. Shri P.S. Dinesh Kumar, Senior Standing Counsel, for the Respondent. JUDGMENT This is an appeal under Section 35G of the Central Excise Act, 1944 the appeal is directed against the order of the Customs, Excise Service Tax Appellate Tribunal, South Zone, Bangalore which is dated 4-1-2012 passed in Final Order Nos. 6 and 7/2012 [2013 (31) S.T.R. 636 (Tri. - Bang.)]. 2. The appellant has sought to raise the following questions as substantive questions in this appeal : a. Whether the Hon ble Tribunal traversed beyond the scope of the original proceeding in inquiring into the question of the application of the sale proceeds of the sale of shares of dismissing the appeal? b. Whether, the Hon ble CESTAT is correct in holding that there is nothing in the Memorandum of Association or in the Director s affidavit to show that the shares were sold for accomplishing any purpose integrally connec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ; that the amount realized by the sale of shares had been utilized for the purpose of carrying on the appellant s business viz., that it was utilized for the business purpose of the company and the amount had been credited to the current account of the appellant and was used for its business activities such as paying salaries of employees, discharging of loans, etc. The assessee being aggrieved had preferred the appeal to the Commissioner of Central Excise (Appeals No. 1), Bangalore in Appeal Nos. 315 and 316/2010. 6. However, the assessee did not meet with success as the Appellate Commissioner dismissed the appeal affirming the view taken by the original authority that it did not constitute any input service having regard to the nature of the business of the assessee and the activities of the assessee. 7. The assessee further appealed to the Tribunal. The Tribunal which heard the learned counsel for the appellant, company and representative of the department, noticed that the stand of the assessee as per the affidavit filed by the Working Director of the Company is as under : the money received as sale proceeds of the shares were credited to the current account of the co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... kgarh Cement - 2010 (20) S.T.R. 456 (Bom.). The Tribunal which examined the case of the appellant found that the decision of the Bombay High Court in Manikgarh Cement s case (supra) had in turn placed reliance on the judgment of the Supreme Court in Maruti Suzuki Ltd. v. Commissioner - 2009 (240) E.L.T. 641 (S.C.) wherein it had been held that certain taxable service rendered by the Company in the residential colony was not integrally connected with the business of the assessee which is one of manufacturing cars and it was held that the expression relating to business in Rule 2(l) defining input services did not cover such activities of the assessee. 10. Examining the facts on hand, the Tribunal found that the assessee while carrying on the business of investment in shares and sale of shares and in the process had paid some Service Tax but its main business was only manufacture of instruments in telecom related industry and therefore, no integral connection was found between the activity of selling of some shares held by the assessee/company in some other company and the rendering manufacturing or service activities. Therefore, the Tribunal thought it proper not to interfere a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of the incidental objects of the assessee can be, To invest and deal with the monies of the Company not immediately required in any manner and in particular to accumulate funds or to acquire or take by subscription, purchase or otherwise however or to hold shares or stock or debentures, in or the security of any Company, association or undertaking in India or abroad or to place monies on loans, deposits on interest or profit sharing terms. 18. Mr. Gururaj has also drawn our attention to paragraph III of the Memorandum of Association which deals with the main objects of the company to be pursued by the company which reads as under : (A) Main Objects of the Company to be pursued by the company of its incorporation : 1. To manufacture Television sets of all types and descriptions and its components. 2. To manufacture and deal in Electronic Components, instruments, equipment, transmitters, amplifiers, receivers, walkie-talkie sets, systems circuits required in military and commercial, electrical industry, including heavy-duty weather-proof communications, telephones, radio frequency microphones, computers rack and panel printed circuits and television com ..... X X X X Extracts X X X X X X X X Extracts X X X X
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