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2019 (5) TMI 1347 - CESTAT KOLKATACenvat Credit - input services - processing fee and upfront fee for providing the facility of loan - HELD THAT:- The processing fee and the up-front fee was paid to the Bank for providing Term Loan and facility of Cash Credit Account. This was necessary for running the business of the appellant/assessee and also for purchase of capital goods, required for manufacture of the final products. It is not in dispute that the assessee availed the bank loans which were very essential to meed the business expenditure and to run the business. These loans facilities are taken and the charges of the Bank under various heads have to be paid and there is no alternative to it. The Bank charges in the name of loan processing fee and up-front fee is in respect of business exigencies only and the service tax paid by them on this account falls within the ambit of “activities relating to business” - appeal allowed - decided in favor of appellant.
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