9911796707
TMI Blog2015 (1) TMI 1147X X X X Extracts X X X X X X X X Extracts X X X X ..... sallowed. 2. As regards disallowance of input service credit of Rs. 59,651/-, which the appellants had already paid under protest but contested on merits, the Commissioner (Appeals) has conceded in para 8.1 of the impugned order that there is no denying the fact that the credit in respect of the said service is admissible, but added that the same is admissible to the extent of the use in respect of manufacture of final product and that though the appellants have contested that the service was received for booking travel tickets for company officials for the official purpose like procuring raw-materials or marketing of goods, they have not produced any evidence to that effect. The appellants have contended that they clearly stated that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on nor as commercial production. As per Rule 3 of the Credit Rules, credit of the specified services/inputs is allowed in case they are received by the manufacturer for use in, or in relation to, the manufacture of final product. The appellants have not used the services of technical knowhow to manufacture any final product. In this scenario the adjudicating authority held that credit cannot be admissible. The appellants have contested that they intend to manufacture the said final products in the coming times and there is no time frame to manufacture the products in question and hence credit cannot be denied. They have relied upon the decision in the case of Cadila Healthcare Ltd. Vs. CCE supra. I have gone through the said decision of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eld. 6.3 However, I may observe here that in case the appellants start utilizing the acquired technical knowhow in producing final products, they are at liberty to take credit of the service tax so paid on the said services at that time. As is evident from the foregoing paragraphs, the Commissioner (Appeals) has clearly conceded that in case appellants start utilising the technical knowhow in producing the final products, they are at liberty to take credit of the service tax so paid on the said service. In other words, the Commissioner (Appeals) has conceded that the said technical know-how has actually been acquired by the appellants for producing the products namely Candisartan and Irbesartan. There is always going to be time lag betwee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... service. The definition of input service includes services used in or in relation to modernisation or renovation of factory. Indeed before the amendment to Rule 2(l) of CENVAT Credit Rules, 2004, even the services used in relation to setting up of the factory was also included in the scope of input service. It can hardly be disputed that the time lag between the commencement of setting up of the factory and the actual production can be in some cases quite long. What is being stated is that the Cenvat Rules do not provide that the credit of input services can be taken only when the final products get manufactured. Commissioner (Appeals) has stated that they should have been initiated the production of their final goods utilising the said tec ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
