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2018 (7) TMI 769 - AT - Central ExciseCENVAT Credit - various input services - Management Consultancy Services - Business Exhibition service - Management consultancy and Tax consultancy Service - Insurance for finished goods and Inputs - Insurance of employees family members - Lease for cars - Architecture and Construction services - Training service - Pandal and Shamiana service. Management Consultancy Services - various services under this head - Held that:- On going through the nature of services availed by the assessee such as advertisement services, market research, coaching and training, finance and legal services, procurement of inputs etc., these services found to be an inclusive part of the definition of input service, after amendment as on 01.04.2011 - as regards Consulting Service, these services are input services under activities relating to business, finance, audit, accounts and quality control, Cenvat credit on the aforesaid services cannot be denied - credit allowed. Business Exhibition service - Held that:- Prior to March 2011, the assessee is entitled to avail Cenvat credit on input services which have been availed by them in the course of their business of manufacturing excisable goods as per the decision of Hon’ble Bombay High Court in the case of CCE, Nagpur vs. Ultra Tech Cement Limited [2010 (10) TMI 13 - BOMBAY HIGH COURT] - the assessee is entitled to avail Cenvat credit of ₹ 7,19,438/-. Management consultancy and Tax consultancy - Held that:- The said services availed by the assessee are legal in nature and the same form inclusive part of definition of input service in terms of Rule 2(l) of Cenvat Credit Rules, 2004 - Credit allowed. Insurance for finished goods and Inputs - Held that:- Assessee has opted insurance for their finished goods and inputs. Until and unless the goods are insured, in the event of any unforeseen accident wherein the finished goods or inputs destroyed before clearance from the place of removal, the said activity is attributable to the manufacturing activity of the assessee - credit allowed. Insurance of employees family members - extended period of limitation invoked for denial of credit - Held that:- Extended period of limitation is not invokable for denial of Cenvat credit on insurance of family members of the employees - As there is no quantification of the said amount before us, therefore, for the said limited purpose of quantification of the amount of disallowance of Cenvat credit on Insurance of family members of the employees of the assessee, the matter need re-examination at the end of the adjudicating authority - matter on remand. Lease for cars - Held that:- The car has been taken by the assessee for official purposes to be used by the employees of the assessee. As the said activity relates to business of manufacturing, therefore, the assessee is entitled to avail Cenvat credit - credit allowed. Architecture and Construction services - Held that:- With regard to architecture and construction services availed by the assessee for setting up of factory, we find that the said issue has been settled by the decision of the Hon’ble Punjab and Haryana High Court in the case of Bellsonica Auto Components India Pvt. Limited [2015 (7) TMI 930 - PUNJAB & HARYANA HIGH COURT], where it was held that the input services used in relation to setting up, modernization, renovation or repairs of a factory will be allowed as credit, even if they are assumed as not an activity relating to business as long as they are associated directly or indirectly in relation to manufacture of final products and transportation of final products upto the place of removal - credit allowed. Training service - the adjudicating authority, on merits has not disputed that assessee is not entitled to avail Cenvat credit but technically it has been held that there is no service tax component shown in the invoices and the assessee has not paid the service tax, consequently they are not entitled to avail Cenvat credit - Held that:- As it is evident from the invoice that assessee has paid the service tax, therefore, we hold that assessee is entitled to avail Cenvat credit on training service to the tune of ₹ 19,158/- - credit allowed. Pandal and Shamiana service - denial on account of nexus - Held that:- The said service has been availed by the assessee for organising Diwali function in the factory for the employee and in terms of decision of the Hon'ble High Court of Karnataka in the case of Toyota Kirloskar Motor Private Limited vs. CCE [2011 (3) TMI 1373 - KARNATAKA HIGH COURT] wherein the Hon'ble High Court has held that for any such type of function organised by the assessee, in the factory premises, for enjoyment of the employees, they are entitled to avail Cenvat credit - credit allowed. Penalties - Held that:- As, on merits the assessee is entitled to avail Cenvat credit, therefore, no penalty is imposable on the assessee in the facts and circumstances of the case - penalties are set aside. Appeal allowed by way of remand.
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