Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2013 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (8) TMI 854 - AT - Service TaxCenvat Credit - Input services - Nexus Between Input Services and Manufacturing Activity - Online journal subscription - Outdoor Catering Service - The appeal was on the ground that the lower appellate authority had not discussed the nexus between the input services and the manufacturing activity of drugs undertaken by the assesse - Held that:- the payment of service tax for electronic subscription of research journals, periodicals, etc., on which service tax had been paid under the category of ‘online information and data base retrieval service’ was definitely an ‘input service’ as defined in Rule 2(l) of the CENVAT Credit Rules - the nexus between the two can be reasonably established - The service was an ‘input service’ and CENVAT credit of service tax paid can be taken except on the portion relating to the cost recovered by the manufacturer from the workers in respect of such service. CCE, Nagpur Versus Ultratech Cement Ltd., [2010 (10) TMI 13 - BOMBAY HIGH COURT] - The invoices clearly indicated the category of service supplied as a category of “online information and data base retrieval services - The assesse being a drug manufacturing company had subscribed to international research journals - The research activity in drug manufacturing industry was well known and without research, no new drug can be developed and such research activity was inherent and integral to the manufacturing activity - The credit entitlement was limited to the amount borne by the assesse -company and service tax on that portion of service charges recovered from the employees was not permissible - If the respondent had availed any such impermissible credit, the same should be reversed forthwith along with interest. Rent-a-Cab Service - Maintenance and Repair Service - Held that:- Service tax paid on Rent-a-Cab Service’ can be allowed as CENVAT credit in respect of cab rented for transportation of employees - Commissioner of Central Excise, Bangalore-III v. Stanzen Toyotetsu India (P) Ltd.[ 2011 (4) TMI 201 - KARNATAKA HIGH COURT] - it was seen that the service tax credit had been availed in respect of ‘Annual Maintenance Contract’ for the Xerox machine installed in the factory premises - So long as service tax has been paid under the said category of service, the respondent can rightly avail the CENVAT credit – Decided against Revenue.
|