TMI Blog2016 (4) TMI 777X X X X Extracts X X X X X X X X Extracts X X X X ..... ive to refer to activity and the definition given in the input service is “activities relating to business”. The findings of the Commissioner (Appeals) that the clearing & forwarding service received is vital for business activity cannot, therefore, be faulted with. It is strange that the department had accepted the payment of tax under reverse charge but objected to the availment and future utilization of credit for discharge of future liability by the Respondent. This stand adopted by the department does not seem to be an approach in the right direction. The further finding given by the Commissioner (Appeals) with regard to non-invocation of extended period holding that the issue is purely interpretative in law cannot also be faulted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2008 dated 25.6.2008 had disallowed the cenvat credit besides imposition of equal penalty under rule 15 (4) of the Cenvat Credit Rules read with section 78 of the Finance Act 1994. An appeal was filed before the Commissioner (Appeals) who had allowed the appeal on merits and on non-invocation of extended period. The Commissioner (Appeals) had observed that all the activities relating to the business falls under inputs service and the words such as appearing in the definition are purely illustrative and the services of the Clearing Forwarding Agent are very vital for the business activity. The Commissioner (Appeals) had also held that it is not the case of the department that the services have not been utilized in the normal course of bu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s a ground to show that there was indeed nothing to justify the levy of penalty traceable to invocation of extended period. 5.The issue in this case relates to eligibility of cenvat credit on payment of service tax rendered by their Foreign Agent during the period 1.6.2006 to 31.3.2007. The respondent has relied on a plethora of cases and placed heavy reliance on the following rulings viz., 1. Sterlite Industries I Ltd Vs. Commissioner of Central Excise, Tirunelveli - 2012 (25) STR 766 (Tri-Chennai). 2. V.G Steel Industry Vs. Commissioner of Central Excise, 2011 (271) ELT 508 (P H) to contend that the respondent need not have paid the tax under reverse charge as the entire activity rendered - viz. the activity rendered by the Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... apt. Relevant portion is extracted below. 25.The expression Business is an integrated/continuous activity and is not confined restricted to mere manufacture of the product. Therefore, activities in relation to business can cover all the activities that are related to the functioning of a business. The term business therefore, in our opinion cannot be given a restricted definition to say that business of a manufacturer is to manufacture final products only. In a case like the present, business of assessee being an integrated activity comprising of manufacture of concentrate, entering in to franchise agreement with bottlers permitting use of brand name by bottlers promotion of brand name, etc. the expression will have to be seen in that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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