TMI Blog2015 (8) TMI 150X X X X Extracts X X X X X X X X Extracts X X X X ..... services no evidence exists on record that any amount has been recovered from the employees of the appellant. The scope of ‘activities relating to business’ is wide for admissibility of cenvat credit at the material time which was correctly allowed by Adjudicating authority. Accordingly, service tax paid on any activity relating to business of manufacturing will be available as Cenvat Credit to the appellant. Commissioner (Appeals) finding for not following the case law of Coca Cola India Pvt Ltd [2009 (8) TMI 50 - BOMBAY HIGH COURT], is not correct because, there is no stay on the operation of that decision and only filling appeal against the decision is not enough for not following the said decision which is also followed in CCE v/s Parth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assed by the Commissioner (Appeals), Central Excise, Ahmedabad-III, wherein it has been held that the Appellant had wrongly availed total Cenvat Credit of ₹ 46,05,092/- which was ordered to be recovered under rule 14 of the Cenvat Credit Rules 2004 along with interest and equal penalty. 2. Revenue s case in brief is that the Appellant is holding Central Excise Registration No. AACCC9663XM001 and has been engaged in the manufacture of Fluorescent Tube Lights, General Lighting Lamps, Compact Fluorescent Lamps etc falling under Chapter 85 of Central Excise Tariff Act 1985 and marketing products through 16 branch offices situated all over India, for which Appellant is availing Cenvat Credit. During the course of audit of the records of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wing points :- a) that the definition of input service is very wide. Input service covers not only services used directly or indirectly in or in relation to manufacture of final products but also various services used in relation to business of the manufacturer whether availed prior to manufacture or after manufacture. He also argued that Adjudicating authority had correctly dropped demand but Commissioner (Appeals) has confirmed the demand on the ground that the department has filed appeal before the Hon ble Supreme Court against Bombay High Court s decision in the case of Coca Cola India Pvt Ltd reported in 2009(242)ELT-168(Bom). However, the said decision is not stayed so far, hence, it should be followed even today. b) that Appell ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... centage of trading income to total income as 63.37% without considering the explanation to Rule 6(3A)(c). d) that the subject SCN is time barred as Appellant's Company has been subject to yearly audits During 22nd December 2008 to 26th December 2008 also, internal audit team conducted the audit. Reveunue s queries have been duly answered vide appellant's letter dt 21.01.2009, 24.04.2009 and 25.09.2009; that appellant had received the said show cause notice only in May 2011. Consequently the department cannot invoke the extended period while issuing the show cause on the ground of suppression of facts and that SCN is time barred. 4. Shri S.Shukla, AR representing revenue, reiterated the findings of the first appellate authorit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... led appeal against the said decision before the Hon ble Supreme Court, which is pending and that the appellant has not produced evidence to establish nexus between the services used with the manufacturing activities. I also find that original adjudicating authority has given findings and justification for allowing such cenvat credit of ₹ 30,88,512/- in O-I-O Dated 04-01-2012 in para 9.1 to 9.10. I agree with the submission of appellant that definition of Input service given under Cenvat Credit Rules 2004 is very wide and it covers services used directly or indirectly in or in relation to manufacture of final products. The inclusive part of definition of input service at the material time in 2007-08 allowed credit of services used in a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... titled to 100% credit in respect of services covered under Rule 6(5) of the Cenvat Credit Rules 2004 as per the provisions prevailing at the material time. It is seen from the relevant portion of Rule 6(5), reproduced in Para 9 of the impugned O-I-A dt. 10-12-2012 that the said rule covers total 17 taxable service as specified in sub-clauses (g), (p), (q), (r), (v), (w), (za), (zm), (zo), (zy), (zzd), (zzg), (zzh), (zzi), (zzk), (zzq) and (zzr) of clause (105) of section 65 of the Finance Act where credit shall be allowed in full unless such service is used exclusively in or in relation to the manufacture of exempted goods or providing exempted services. Revenue has disallowed cenvat credit of ₹ 15,16,580/- holding it to be attributab ..... X X X X Extracts X X X X X X X X Extracts X X X X
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