Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2018 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (9) TMI 1120 - AT - Central ExciseCENVAT Credit - Courier service - audit fee - manpower used for TDS entry - insurance service - housekeeping service - consultancy services - book adjustment - penalty. Courier service - whether the appellant is eligible for credit availed on courier service used for sending free samples to the buyers abroad? - Held that:- Although the said service has been shown in the show cause notice and the orders as outward transportation, the appellant has produced invoices as discussed in the adjudication order to show that these service are availed by the appellant for sending the free samples to the buyer abroad. The documents show that the services of DHL courier service were availed by the appellant for sending the samples of medicines to buyers abroad - thus, these are not outward transportation service as alleged in the show cause notice or in the adjudication order - However, the said invoices were not produced before the adjudicating authority - matter kept on remand for verification of invoices. Audit Fee - Held that:- It is seen that the authorities below have allowed credit in respect of service tax paid on charges paid to the auditor. The appellant is contesting the service tax paid on the conveyance charges for the auditor. However, he has not furnished any document to show that the vehicle used for conveyance of the auditor was registered in the name of the service provider - credit denied. Manpower used for TDS entry - Held that:- Since the appellant has to do the work of deducting the tax at source, manpower have been used for such work (data entry), the disallowance of credit is unjustified - credit allowed. Insurance service - Held that:- It is seen that the appellant had availed goods transit insurance as well as employees insurance. Needless to say that the goods transit insurance is directly related to the manufacturing activity and therefore eligible for credit. With regard to employees insurance, which is in the nature of covering the risk of gratuity amount, I am of the view that the same would not fall within the exclusion clause. The manufacturer avails such insurance to cover the financial risk that he would have to face in case of payment of gratuity to employees and therefore is directly related to manufacture - credit on the services allowed. Housekeeping service - Held that:- It is seen that the appellant has not produced the entire invoices regarding this issue - matter requires reconsideration. Consultancy services - Held that:- Since the said services are availed for legal advice / consultancy, I am of the view that the same would be eligible for credit, if the appellant produces the invoices - matter remanded. Also, appellant submitted that under the heading book adjustment, the appellant has actually availed credit of manpower supply agency service availed for calibration service of the machines - Held that:- Since these are directly related to manufacturing activity, the said services would be eligible for credit, if the appellant produces the invoices - matter on remand. Penalties - Held that:- There were doubts as to whether rent-a-cab services are eligible for credit after 1.4.2011. So also there were divergent views as to whether WCS used for repair and renovation is eligible for credit. Being interpretational in nature, penalties on these services set aside. Appeal allowed in part and part matter on remand.
|