TMI Blog2015 (5) TMI 381X X X X Extracts X X X X X X X X Extracts X X X X ..... E]. As in the case of VST Industries Ltd [2012 (5) TMI 374 - CESTAT, BANGALORE]. this Tribunal held that the supply of tobacco seeds free of cost to the farmers and also necessary advice to be given to them by experts. These advisory arrangements were made under agreement between appellant and the services provider. In those circumstances, this Tribunal has held that providing of free tobacco seeds and security services are advisory services and are having nexus to the manufacturing activity of the cigarette manufacturer. Therefore, following the decision of this Tribunal in the case of VST Industries Ltd. (2012 (5) TMI 374 - CESTAT, BANGALORE) I hold that in this case the services availed by the appellant is having a nexus indirectly to the manufacturing of their final product. - Appellant are entitled to take Cenvat Credit on GTA services availed by them in question. In these circumstances, I set aside the impugned order - Decided in favour of assessee. - Appeal No. ST/55841/2014-ST(SM) - Final Order No. 50263/2015-ST (SM) - Dated:- 21-1-2015 - Ashok Jindal, Member (J),J. For the Appellant : Ms Mansi Garg, Adv. For the Respondent : Ms Ranjana Jha, DR ORDER ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Adjudicating authority has observed as under: I do not find them convincing, Sugarcane until sold to the party are the property of the cane growers. All expenses involved seed, plantation, manure, irrigation, etc. are to be borne by the cane growers. Cane seed and Bio-manure are used in cane cultivation and not in any way goes into the use in the manufacture of sugar. Even if it is presumed that the party had to supply free of cost Cane seeds and Manure to the Cane Growers as a sugarcane development measure, it is not going to help the case of the party. It is not even case of the party that they themselves were growing sugar cane. In view of the above input service credit for GTA availed in supply of cane seed / bio-manure does not link directly or indirectly with the manufacture of final product of the said industry. Hence, on merit, the submissions of the party have no force and therefore the demand sustains. 5. She further submitted that issue was further examined by the Ld. Commissioner (A) and he also observed as under: Here, I find that the factory and cane grower are two distinct entities. The factory facilitated the cane grower by providing high yielding variet ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r. The appellant was unable to justify its claim that the services of GTA for distribution of seeds and bio-manure are eligible input services, before the adjudicating authority and I do not find any reason to interfere in the judicious order of the Adjudicator and hold that the appellant are not eligible for Cenvat credit on activities discussed as above. 6. She further submits that the cases relied upon by the Ld. Counsel have no relevance to the facts of this case as in the case of Ultratech Cement (Supra) it is the case of availment of services outside factory premises for generation of electricity and in the case of VST Industries Ltd. (Supra) facts are not similar to this case as in that case product is tobacco and in this case product is sugar and in that case services are altogether different from the services availed by the appellant in this case. In these circumstances, she prayed that appellant has failed to discharge their application services availed by them having nexus to the final product. Therefore, they are not entitled to take Cenvat Credit. 7. Heard the parties. Considered the submissions. 8. In this case the appellant has availed Cenvat Credit on tran ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... select group of farmers. Under this scheme, they supply tobacco seeds free of cost to the farmers and also arrange necessary advice to be given to them by experts. This advisory arrangement during the period of dispute (February to July 2009) was made under an agreement between the appellant and M/s. Supreme Detective and Security Services. Under this agreement dated 18.04.2006 between the appellant and M/s. Supreme Detective and Security Services (SDSS for short), the annexure to the agreement, to the farmers within the prescribed time. One of the scheduled services was seasonal advisory farmer activities . The mode of rendition of this service has been briefly discussed in the impugned order itself as follows: In the instant case, in order to ensure quality, quantity and yield of suitable grades of tobacco; the appellants undertake an extensive programme of tobacco crop development with the farmers all the way from seed to marketing of the tobacco crop. As a part of this development activity the appellants supply seeds to the farmers free of cost and also supervisory and advisory services for cultivation of the crop. In order to provide these the appellants enter into agree ..... X X X X Extracts X X X X X X X X Extracts X X X X
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