TMI Blog2012 (12) TMI 30X X X X Extracts X X X X X X X X Extracts X X X X ..... s "Vishnu Associates Ltd." before their name was changed to "Valco Industries Ltd". A few service provides had issued bills in their earlier name. There is no other company by name. "Vishnu Industries Ltd." and the services in question was received by them and utilized. So considering provisions of the proviso to Rule 9(2) of Cevant Credit Rules, 2004 there is no justification in denying the credit. Security services for the factory at Chandigarh - Held that:- No reason to deny Cenvat credit on this however, the submission of fact made by the Counsel in this regard needs verification. In respect of mobile phones also, the credit is to be extended based on precedent decisions though such credit should be apportioned as would relate to dut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - on Insurance of vehicles registered in the personal name of the Director, and mobile phones used by Directors. (4) Service tax amount of Rs.1,483/- paid on fee for membership of Clubs for Directors. (5) Service tax amount of Rs.2,518/- relatable to services exclusively relatable to Baddi unit. 3. Revenue's case is that these services were received at their headquarters and the headquarters transferred the credit to their factory at Chandigarh which is manufacturing dutiable products. Revenue points out that the appellant is having another factory at Baddi where the goods manufactured are exempted from excise duty. He also points out that the appellant did not get themselves registered as "input service distributor" and follo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appellant is that though these vehicles were registered in the name of the Directors the vehicles were bought using funds of the company and it were reflected as assets in the balance sheet of the company. Further the entire expenditure on vehicle was being met by the company only. He argues that the conveyance provided to the Director was for better functioning of the company and therefore there is no reason to deny Cenvat credit for service tax paid on insurance services for the vehicle notwithstanding the fact that vehicle was registered in the names of the Directors. 7. In the case of mobile phones there are many decisions of the Tribunal allowing Cenvat credit of service tax paid on such services considering it as an input servi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ne of the main objections raised by Revenue is that the appellant did not follow the procedure of getting registered as 'input service distributor'. In the instant case bills received at Headquarters were transferred to one factory. There was no distribution as such. Since there have been decisions of the Tribunal that there is no serious irregularity in taking credit in one factory based on duty paying documents addressed to the main office of the company there is no sufficient reason to deny credit when proviso to Rule 9(2) of Cenvat Credit Rule also is taken into account. The only issue is that they did not comply with provisions of Rule 6 of Cenvat Credit Rules, since one of those factories was in the exempted area. This issue can be ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m the fact that the expenditure was being met by the company, I hold that Cenvat credit can be allowed in respect of such items also. However, it is necessary to verify the factual submissions regarding the fact that vehicles were figuring as assets in the balance sheet of the company and its expenditure was being met by the company. Further, it is necessary to apportion the Cenvat credit on this item also between the value of dutiable goods and value of exempted products manufactured by the appellants following the principles laid down under Rule 6 of Cenvat Credit Rules 2006. 14. In view of the discussions above, subject to verification of facts claimed by the Appellants, I allow Cenvat credit in respect of security services fully and I ..... X X X X Extracts X X X X X X X X Extracts X X X X
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