TMI Blog2014 (11) TMI 963X X X X Extracts X X X X X X X X Extracts X X X X ..... eir business activity. The credit of service tax paid by an event management company for organizing events such as functions to honour employees at Bombay whereas the manufacturing activity is at Pune cannot be seen to any nexus connected with the business of the appellant. Reliance is placed of the judgment in the case of Manikgarh Cement (2010 (10) TMI 10 - BOMBAY HIGH COURT) wherein Hon'ble High Court held that rendering taxable services at the residential colony for the benefit of employees is not integrally linked to the business of the assessee. The next service on which credit was denied is the security service at the Kondhwa godown. We note that the godown is outside the factory and no evidence was shown to prove that the godown was the place of removal. Input service under Rule 2(l) include service used in storage up to the place of removal. No evidence was produced as to show what was stored in the godown and whether it had any relation to the manufacturing activity of the appellant. The Cenvat credit is inadmissible. Cenvat credit is admissible for services used in the premises or precincts thereof for landscaping - Prima facie credit of service tax does not appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ould reduce the demand for Concentrate. Thus periodical quality audit was undertaken at bottler's end. Similarly, they approve venders from whom the bottlers purchase input such as mango pulp. They availed the service of Quality Control firm to conduct audit at the end of bottlers. They emphasized that 'input service' has to be interpreted in relation to their business activity which involves pulp testing, verification of inventories and quality audit services at the end of supplier/bottler. Credit on such service is admissible. They relied on the case of VST Industries Ltd. Vs. CCE, Hyderabad reported in 2013 (31) STR 357 (Tri.-Bang.). 4. As regards service for verification of sales generating assets, they had invested a lot of money in these assets, correct usage of these assets results in better visibility which translates into more sales of beverages which in turn results in higher sales of Concentrates. On event management service they stated that it helps boost morale of the employees resulting in greater efficiency. They relied on Endurance Technologies Pvt. Ltd. Vs. Commissioner of C.Ex., Aurangabad reported in 2013 (32) STR 95 in which case credit of service ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Commissioner Vs M/s Manikgarh Cement reported in 2010 (20) STR 456 (Bom.), case of M/s Telco Construction Ltd Vs CC 2012 (1) ECS 194. As regards event management and landscaping credit was denied relying on judgement of M/s Manikgarh Cement (Supra). The credit on security service for godown was denied because it is not known for what purpose the godown premises is being used. Thus Commissioner confirmed the demand of Cenvat Credit of service tax paid on the above services, with interest and penalty. 7. The ld. A.R. reiterated the findings of the Commissioner and stated that the judgements relied upon by the appellant only allow Cenvat Credit on input services which are used by the manufacturer in activities relating to business in or in relation to the manufacture of his own final products. 8. We have considered the submissions. We find from the definition reproduced below. input service means any service (i) used by a provider of taxable service for providing an output service; or (ii) used by the manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products and clearance of final products upto the place of removal, (Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elates to refrigerators/deep refrigerators at the premises of retailers for storing beverages. As the beverages are not the final product of the appellants there appears to be no nexus with the manufacture of Concentrates by the appellant. Prima facie credit of service tax does not appear to be admissible in case of QMS Audit, inventory audit at bottlers' end, mango pulp testing at suppliers' end and verification of assets at retailers. 10. The Credit of service tax towards maintenance, charges for coffee vending machines would be admissible because the machines are owned by the appellants and used for dispensing the tea/coffee for retailers. As it has nexus to their business activity. The credit of service tax paid by an event management company for organizing events such as functions to honour employees at Bombay whereas the manufacturing activity is at Pune cannot be seen to any nexus connected with the business of the appellant. Reliance is placed of the judgment in the case of Manikgarh Cement (supra) wherein Hon'ble High Court held that rendering taxable services at the residential colony for the benefit of employees is not integrally linked to the business of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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