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Commissioner of Central Excise, Nagpur Versus M/s Sunil Hi-Tech Engineers Ltd.

2015 (11) TMI 903 - CESTAT MUMBAI

CENVAT Credit - input services - Air Travel Agent - revenue contended that invoice raised by the service provider pertain to tickets issued in the name of personnel of the assessee - Held that:- In view of the nature of the business of the assessee being mainly works contract, wherein the works are situated at different places, the personnel of the assessee are required to travel for business purposes between various works site from Head Office to work site and from work site to Head Office and .....

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t service is rightly allowed by the impugned order - Decided in favour of assessee. - Appeal No. ST/89075/13 - Dated:- 1-5-2015 - Shri Anil Choudhary, Member (Judicial) For the Petitioner : Shri S.R. Nair, Examiner (AR) For the Respondent : Shri Ganesh K.S. Iyer, Advocate ORDER Per: Shri Anil Choudhary The Revenue is in appeal against order of the Commissioner (Appeals) whereby the CENVAT Credit in respect of the input services Air Travel Agent, which was disallowed vide Order-in-Original, has b .....

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ty services. On the verification of the bills of the Air Travel Agent, it appeared that the invoice issued by the service providers pertain to booking of air ticket, rail tickets in the name of the personnel of the assessee. 2.1 As regards the security service, it was found that the same was provided at the residential premises and Cenvat amount of ₹ 41,181/- is not admissible. In the statement recorded of Shri D.S. Jaiswal, Authorized Signatory of the assessee, it has been stated that Air .....

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which application has been made for adding on 8.3.2010. As the Revenue felt that the assessee have availed inadmissible CENVAT Credit in respect of Travel Agent Services and Security Services which incurred in the Civil Line premises, the assessee was required to show cause as to why the CENVAT Credit totally ₹ 9,06,022/- be not disallowed and recovered under Rule 14 of Cenvat Credit Rules read with Section 11A of the Central Excise Act and further why not interest be recovered and also w .....

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the business purposes and CENVAT Credit is eligible on the input service of Air Travel Agent. Further, reliance was placed on the ruling of this Tribunal in the case of M/s Heartland Bangalore Transcription Ser. (P) Ltd. Vs. Commissioner of Service Tax, Bangalore 2011 (21) STR 430 (Tri-Bang), wherein the refund of CENVAT Credit with respect to the input services of Air Travel Agent was claimed under Section 5 of Cenvat Credit Rules, 2004. It was held that the service of Air Travel Agent has bee .....

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residential premises, it was urged that it is not in dispute that the bills for the services issued in the name of the assessee and the security expenses was incurred by the assessee for his administrative office and not for the residential premises, which is situated adjacent to the administrative office and the mention of the residential premises is only the typographical error on part of the service provider. It was further stated that administrative office situated at Civil Line is already .....

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rieved, the respondent have preferred appeal before the Commissioner (Appeals), who vide the impugned order was pleased to allow the credit of ₹ 8,64,841/- availed in respect of Air Travel agent service and was pleased to disallow the credit of ₹ 48,141/- in respect of security services with respect to Civil Line premises at Nagpur. Further, penalty imposed under Rule 15 of Cenvat Credit Rules, 2004 read with Section 78 was accordingly reduced to ₹ 48,181/- and the appeal was a .....

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el for such important activities, such as, visit to the various companies and meet the representatives of the purchaser, visiting the plant for installation and repairs, negotiations, settling disputes, verification of quality of products etc. These are all activities closely related to business of the appellant. I find that the issue, whether credit could be availed only in respect of service provided within the business premises is no more res-integra, having been settled by the Hon'ble Bo .....

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ed the credit on another ground that the invoices on the basis of which credit has been availed are not in the name of appellant but in the name of company s officers. I find from input service invoices produced by the appellant that the invoices are in the name of appellant and passengers name also appeared on the said invoices who were the officers of the company. I find that the appellant has produced sample copies of invoices even before the lower authority while replying to the show-cause .....

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lowance of CENVAT Credit in respect of Air Travel Agent service on the ground that the invoice raised by the service provider pertain to tickets issued in the name of personnel of the assessee. Accordingly the assessee is not entitled to avail CENVAT Credit of the same, since the said input service was not rendered to the assessee and hence did not qualify as input service in view of Rule 2(l) of Cenvat Credit Rules, 2004. It is further urged that the Commissioner (Appeals) has erred in relying .....

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rates exclusively used for the manufacture of the respective aerated waters which are advertised by the assessee?, and (b) whether the advertisement of sales promotion of aerated waters undertaken by manufacturer of concentrate is covered by the inclusive part of the definition of input service contained in Rule 2(l) of the Cenvat Credit Rules, 2004? The Hon'ble High Court after examining the issue in detail held that there is clear link between the concentrate and the beverages made from .....

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lers and taken back to the factory for filling the fresh batch on a constant basis. At all times, quality of beverage, marketing support of the beverages is done by the brand name holder-cum-concentrate manufacturer. Thus, what follows from the above discussion is that the credit is availed on the tax paid on the input service, which is advertisement and not on the contents of the advertisement. Thus it is not necessary that the contents of the advertisement must be that of the final product man .....

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ment services having a connection with the manufacture of the final product. Accordingly, it was held that the manufacturer-assessee Coca Cola is entitled to CENVAT Credit in respect of advertisement expenses for beverages (aerated waters) manufactured out of the concentrate so manufactured by the assessee. 4. The learned Counsel for the respondent-assessee states that in addition to the ruling in the Coca Cola India Pvt. Ltd. (supra), the issue of input tax credit have been dealt in detail by t .....

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