TMI Blog2019 (3) TMI 970X X X X Extracts X X X X X X X X Extracts X X X X ..... er Rule 14 of CCR, the appellant shall be liable for interest only on such portion of cenvat credit which they have utilized - this issue is remanded to the Adjudicating Authority who shall calculate the interest payable under Rule 14. Appeal allowed by way of remand. - Appeal No. E/51494/2018-SMC - FINAL ORDER NO. 50295/2019 - Dated:- 20-2-2019 - Shri Anil Choudhary, Member (Judicial) Shri Hemant Bajaj, Advocate for the Appellant Shri K. Poddar, DR for the Respondent ORDER Per Anil Choudhary: 1. The issue in this appeal is with regard to disallowance of cenvat credit on marketing and festival expenses incurred by the appellant for ₹ 44,758/- and towards marketing and sales promotion expenses ͅ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s to promote business/sales in as such the activities are in the nature of marketing/ sales promotion and is covered in the inclusive definition of input service. The Ld. Commissioner (Appeals) have rejected the claim observing that these are social activities and have no nexus with the manufacturing process of cement or clinker, thus not eligible for cenvat credit. The Ld. Counsel relies on the ruling of Hon ble Karnataka High Court in the case of Toyota Kirloskar Motor Pvt. Ltd. V/s CCE, LTU, Bangalore 2011 (24) STR 645 wherein it was held that expenses incurred by the manufacturing company in observation of Karnataka Rajyosthaya day, is essential business expenditure for promotion and maintenance of peace and harmony inside and outsi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... contention that hiring of van comes under the a excluded category of definition of input service, the Ld. Counsel points out that a similar issue arose before the coordinate Bench of this Tribunal in Marvel Vinyls Ltd V/s CCE, Indore 2017 (49) STR 424 (Tri-Del) This Tribunal taking notice of the exclusion clause B, introduced w.e.f. 1st April, 2011 which is as follows:- b. service provided by the way of renting of a motor vehicle, in so far as they relate to a motor vehicle which is not capital goods . This Tribunal analysed the exclusion clause as follows:- 4. A reading of the above Exclusion Clause show that services provided by way of renting of a motor vehicle do not stand excluded in totality. The Exclusion Clause is i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g of motor vehicle the motor vehicle would always be a capital goods. As such the expression - which is not a capital goods appearing in the said exclusion clause would require examination vis- -vis the service provider and not vis- -vis the services recipient. As such the interpretation of the lower authorities that motor vehicle are not capital goods for the services recipient cannot be appreciated inasmuch as motor vehicles are admittedly capital goods in terms of the Rule 2(A) of Cenvat Credit Rules. 7. In view of the above analysis, I hold that the appellant would be entitled to the Cenvat credit on service tax paid on the said services. Accordingly, the impugned order is set aside and appeal allowed with consequential reli ..... X X X X Extracts X X X X X X X X Extracts X X X X
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