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2018 (6) TMI 237 - AT - Central ExciseCENVAT credit - erection, commissioning and installation service - denial of exemption on the ground that it is not flowing from the SCN - Transmitting the electricity to the Grid - Services such as organizing of sugar cane development programme - SMS services to the farmer members - Hotel/travelling services - Held that:- The erection and commissioning of transmission line was undertaken for supply of electricity from MSETCL to the appellant’s factory. Such service is for transmission of electricity to the appellant which is foremost requirement for running manufacturing activity of sugar in the factory premises. Therefore, the credit is admissible. Transmitting the electricity to the Grid - separate SCN issued - Held that:- As per submissions of the learned Counsel, separate show-cause notice was issued for reversal of CENVAT Credit applying rule 6 of CENVAT Credit Rules, 2004. Therefore, that issue is separately decided in adjudication of those show-cause notices. Since that issue is not arising in the present case, I do not address the same. Services such as organizing of sugar cane development programme - Held that:- In the villages to educate farmers regarding carrying better production of sugar cane and good quality thereof, the appellant organized this programme by which education is given to the farmers. This programme is nothing but better cultivation of sugar cane which ultimately contributes in the higher and better quality of production of the sugar in appellant’s factory. Therefore, the said service has direct nexus with production. SMS services to the farmer members - Held that:- SMS services to the farmer members is also sharing the information in relation to time table of sugar cane harvesting, supply of sugar cane and payment against the same, which is directly related to the business of the sugar manufacturing. Hence, it is covered under the definition of inputs - credit allowed. Hotel/travelling services - Held that:- It is observed that the services are availed by the Director and officials of the appellant company for visit to various Govt. offices, customers in the course of manufacturing business. Therefore, the same has direct nexus with the appellant’s manufacturing activity - credit allowed. Appeal allowed.
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