2013 (9) TMI 709 - CESTAT AHMEDABAD

Input Service Distributor - CENVAT credit - Assessee had availed cenvat credit of service tax paid on various input services on the basis of invoices issued by their head office which had been registered as Input Service Distributor (ISD) - In respect of nineteen services, the credit availed had been disallowed - The disallowance had been made on the ground that there was not nexus with manufacture and credit was admissible only up to the place of removal – Held that:- The stand taken by the Revenue that no credit was admissible after the place of removal of the goods was totally untenable - The substantive part of the definition input service covers services used directly or indirectly in or in relation to the manufacture of final products, whereas the inclusive part of the definition of input service covers various services used in relation to the business of manufacturing the final products.

Commissioner of Central Excise, Nagpur vs. Ultratech Cement Limited [2010 (10) TMI 13 - BOMBAY HIGH COURT] - the credit of service tax paid on Advertising Agency Services, Business Auxiliary Services, Business Support Services (in the case of this assessee, it is Advertising Agency Service), Management and Consultancy Services, Online Information and data base Access Service, Port service, Maintenance and repair Service, Consulting Engineer’s service, Security Agency Service and Storage and Warehousing credit was admissible.

Construction Services in respect of Office and Factory etc. - Credit was admissible and appellant voluntarily reversed the credit taken in respect of service availed for housing colony of the appellant - Similarly, appellants had also reversed the credit taken in respect of security agency services, Cleaning services, Survey and Map-making service in respect of services received other than for the purpose of factory/ office.

Event Management Service - The services had to be held as relatable to business of manufacturing only since the services are directly relatable to promotion of goods - Technical inspection services were availed in respect of quality verification etc. and such services were definitely relatable to manufacture - credit was admissible in respect of such services also.

Penalty Under Rule 15 of Cenvat Credit Rules, 2004 - Appellant had taken credit correctly and where credit had been taken inadvertently or by mistake for housing colony etc. they had promptly reversed the amount - availment of credit can be said by mistake and therefore no penalty was imposable - order set aside - Decided in favour of Assessee.