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2015 (5) TMI 842 - CESTAT AHMEDABAD

2015 (5) TMI 842 - CESTAT AHMEDABAD - 2015 (39) S.T.R. 629 (Tri. - Ahmd.) - CENVAT Credit - input services - whether Packaging Services, Security Services, Telephone Services & Chartered Account Services would be considered as input services for of Lending of trademark to others - Payment of service tax on royalty received as output services - Held that:- In the certificate/opinion obtained from Y.J. Trivedi & Co. Patents & Trade Marks Attorney & Advocate, Ahmedabad also no provisions of the Tra .....

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vices availed by the appellant has to be considered to have been utilized for making of tea bags and can not be considered to be availed directly or indirectly in maintaining/protection of appellant s Trade Mark.

As per Rule 6 (5) of the Cenvat Credit Rules, 2005 full credit of Security Services credit is permissible if, the credit of such services is not exclusively used in relation to exempted goods or providing exempted services. According credit of service tax on security services .....

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rved that improper credit taken which was detected by the department officers only. At no stage of appellant approached the department for any guidance that there was any confusion in admissibility of credit on the impugned services. Therefore, extended period will be applicable - However, penalties are waived off. - Decided partly in favour of assessee. - Appeal No. ST/11962/2014 - Order No. A/10643 / 2015 - Dated:- 22-5-2015 - Mr. H. K. Thakur, Hon ble Member (Technical),J. For the Appellant : .....

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ccount Services. 2. Shri S.J. Vyas (Advocate) appearing on behalf of the appellant argued that appellant firm is holding the brand name of Wagh Bakri tea. They are letting their brand name to others and are paying service tax on such royalty charged received under Intellectual Property Right Services . That as per the legal advice dated 15.10.2010 from Y.J. Trivedi & Co. Patents & Trade Marks Attorney & Advocate, Ahmedabad appellant is also required use the trade mark directly if it .....

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which is their output service as Intellectual Property Right . That other input services like Telephone Services & Chartered Account s Services & Security Services are availed both with respect to providing Intellectual Property Right Services as well as the activity of sales of their products got packed by the appellant and that such credit is admissible to them as per following case laws:- (i) CCE Vadodara-II vs. Siemens Healthcare Diagnostics Ltd. [2014 (36) S.T.R. 192 (Tri Ahmd.)] ( .....

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packing activities. That as the issue was contentious one appellant is also eligible for Section 80 benefit. 3. Shri. J. Nair (AR) appearing on behalf of the Revenue argued that Packaging Services & Security Services are not in relation to providing of Intellectual Property Right Services, either directly or indirectly. Learned AR made the Bench go through para 10.3 & 10.4 of the order dated 20.02.2014 passed by the first appellate authority to argue that no provision of the Trade Marks .....

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of Service tax credit on Packaging Services availed by the appellant is concerned it is observed that the activity is done with respect to packing of Wagh Bakri tea. Appellant is of the argument that such activity has to be undertaken to protect their ownership right over the Trade Mark. For this aspect they have produced a copy of opinion dated 15.10.2010 from Y.J. Trivedi & Co. Patents & Trade Marks Attorney & Advocate, Ahmedabad. It is observed that this opinion is obtained on 15. .....

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e held that packaging Services are availed by the appellant directly for protecting their Trade Mark/Brand Name. Therefore, the packaging Services availed by the appellant has to be considered to have been utilized for making of tea bags and can not be considered to be availed directly or indirectly in maintaining/protection of appellant s Trade Mark. 4.1 So far as admissible of service tax credit on Security Services is concerned, it is observed that as per Rule 6 (5) of the Cenvat Credit Rules .....

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