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TMI Blog2012 (6) TMI 578X X X X Extracts X X X X X X X X Extracts X X X X ..... and utilized Cenvat credit in respect of the excise duty and service tax on various input services. The various Show Cause Notices were issued to the appellants denying the credit taken by the appellant on the service tax paid by them to the service provider in respect of the various services. Details of the services involved in the different appeals are as under: 3. Appeal Nos E/156/09 and 158/09. The credit of the service availed by the appellants are the maintenance, repairs, technical inspection, survey, manpower recruitment, cleaning etc of their tugs and barges, vessels. 4. Appeal No. E/157/09, and E/182/09. The service tax paid on ship fees paid to the port authorities. 5. Appeal Nos. E/179/09 and E/182/09. Service tax paid on mo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed at some distance in the sea. Tugs and barges belonging to the appellants are used for bringing ashore raw materials from the vessel anchored in the sea. The appellants had availed the repairs and maintenance service, insurance, technical inspection services etc in respect of these vessels. Without the raw materials there cannot be any manufacture in the factory. Therefore, these services are essential for bringing the raw materials and therefore indirectly used in the manufacture of the final products. Similarly, they are paying shipping fees to the port authorities for removal of their finished products and without paying the shipping fees it is not possible for them to remove their final products. Therefore, the shipping fees paid by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing activity of the appellants and, therefore, they are entitled for the Cenvat credit on these services. 11. The learned SDR appearing on behalf of the Revenue submitted that in the case of the appellants this Tribunal has already decided the issue involved in these appeals on the various services (except canteen service) vide Order No. A/227-230/09-SMB/C-IV dated 1.6.2009 and Order No.A-71/2010/SMB/C-IV dated 20.01.2010. These orders were passed by this Bench against the appellant and appellants though challenged the orders in the Hon'ble High Court but no stay has been granted. Therefore, the issue relating to these services is squarely covered by these orders. As regards the issues related to the canteen services, he submitted that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has been utilized for payment of duty of excise on final products. In the present case, the Cenvat credits in question were utilized for payment of such duty and, therefore, Section 11A was correctly invoked in the relevant show-cause notices. After giving careful consideration to the submissions, I have found a valid point with the SDR. Rule 14 was enacted to cover cases of wrong availment of Cenvat credit of inputs, capital goods or input services as also cases of erroneous refund of any amount of Cenvat credit initially denied. The rule also says that Sections 11A and 11AB of the Central Excise Act and Sections 73 and 75 of the Finance Act, 1945 may also be applied mutatis mutandis to a demand under the rule. It appears that Sections 11 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e services given holding that these are not services connected to the manufacture of the goods in respect of the appellants. Following these decisions of this Bench, I also hold that the appellants are not entitled to Cenvat credit on these services. 14. As regards availment of Cenvat Credit on the canteen services, the learned counsel submitted that they are recovering charges for the canteen services from their employees. I find that in view of the decision of the Hon'ble Bombay High Court in the case of M/s Ultratech Cement cited (supra) Cenvat credit is not admissible to the appellants if the cost of the food is borne by the workers of the factory. Therefore, the appellants will not be entitled to Cenvat Credit in respect of the cantee ..... X X X X Extracts X X X X X X X X Extracts X X X X
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