TMI Blog2015 (9) TMI 942X X X X Extracts X X X X X X X X Extracts X X X X ..... ring activity of the appellant and therefore, I hold that appellant is entitled to take Cenvat credit on these services. Sale of Waste and scrap which is arising out of manufacturing of the final product is a part of the business of manufacturing of cement by the appellant. Therefore, I hold that on auction services, the appellant is entitled to take Cenvat credit. Further, I find that the charges have been paid for availment of club and association services for the officials visiting outside the city and same has been paid in the case of business of appellant. Therefore, I hold that on this auction and club and association services, the appellant is entitled to take Cenvat credit. Purchase order shows that goods are to be delivered ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rt from other services, services of outdoor catering, rent-a- cab, auction, club and association, and outward transportation services. Input services credit on these services was sought to be denied on the premise that they do not qualify as input service credit as per Rule 2(l) of Cenvat Credit Rules, 2004. Proceedings were initiated against the appellant and impugned orders were passed to deny the Cenvat credit along with interest and penalty also stand imposed on the appellant. Aggrieved from the said orders appellant is before me in these appeals. Learned Counsel for the appellants submits that (A) Outdoor catering services: The services have been utilized by them in the factory and as per Factories Act they have to maintain cante ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... turing cement, therefore they are entitled to take Cenvat credit. (D) Club and Association services: It is the contention of the appellant that club and association services have been used by the employees or the officials of the appellants outside the city in the course of their business. Therefore, they are entitled to take Cenvat credit. (E) Outward goods transport services: It is the contention of the appellant that said service has been used by them for transportation of finished goods up to the place of buyers as per the purchase order and invoices have been issued which evidenced that sale is on FOR basis and delivery is to be given to the place of buyers. It is further submitted that transportation charges have been included i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hree conditions of C.B.E. C. Circular No. 97/8/07 dated 23-8-2007 that the ownership of the goods remained with the appellant till delivery and the risk and cost is borne by the appellant and fee cost of transportation is included in the assessable value as appellant has failed to satisfy the condition that goods remained in the ownership of the appellant till delivery and risk and cost are borne by the appellant, therefore, they are not entitled to take Cenvat credit. In these terms, impugned order is required to be set aside. 4. Heard both sides. Considered the submissions. 5. In this case, Cenvat credit on input services sought to be denied and the services on which the Cenvat credit is denied are to be dealt with individually. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t on these services. Further, I find that in the impugned order or the show cause notice, the allegation levelled against the appellant is that appellant has not segregating the amount of rent-a-cab pertaining to the transportation of the employees from residence to factory or vice versa and rent-a-cab services used by them in the course of their business. I therefore, hold that the issue was not before the lower authorities to find out the quantum of recovery made by the appellant from their employees towards providing a rent-a-cab service. Therefore, I hold that, appellant is entitled to take Cenvat credit on rent-a-cab service. (3) Auction and club and association services - The Cenvat credit has been taken on service of auction for t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by the decision of this Tribunal in the case of Lumax Automotive Systems Ltd. (supra). Therefore, I hold that appellant is entitled to take Cenvat credit on outward transportation service as the transportation charges have formed part of the assessable value and goods are to be delivered at the place of the buyers. 6. In the result, I hold that appellants are entitled to take Cenvat credit on all services except ₹ 862/- on outdoor catering services. As appellants are entitled to take Cenvat credit, therefore demand of interest is not sustainable. Consequently, penalties on the appellants are not imposable. Appeals are allowed in the above terms. (Dictated and pronounced in the open Court) - - TaxTMI - TMITax - Service Tax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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