TMI Blog2016 (6) TMI 161X X X X Extracts X X X X X X X X Extracts X X X X ..... rder to store raw materials or finished goods. Therefore, this service cannot be said to be not integrally connected and credit cannot be denied. Legal services - Held that:- such services are availed for statutory compliance which is the duty of the assessee to comply and the credit cannot be denied for such services since it has relevancy to the activity of manufacture. Once there is legal obligation and the assessee has to discharge the same irrespective of the manufacture being done but, business to be carried out, cenvat credit of service tax paid on such count is undeniable. Courier service - Held that:- such service is considered necessary for the business because without such service, there may not be possibility of movement of documents as well as goods with least cost. Therefore, the appellant is entitled to cenvat credit on this count. Information Technology service - Held that:- this is an integral part of the business activity to reduce the paper work and to carryout business efficiently and effectively. Maintenance of software is also integral part of activity of business. Therefore, this service is inseparable from the business activity of the appellant for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hereon. All the services pertain to the manufacturing activity and the respective services were input for the said activity for which that was utilised - - Therefore, the decision of the adjudicating authority denying Cenvat Credit on above counts is reversed and the appellants are entitled to cenvat credit on all the services. - Decided in favour of appellant - E/485-487/2012 & E/41529/2014 - Final Order Nos. 40066-40068 and 40070/2016 - Dated:- 8-1-2016 - D. N. Panda, Member (J) And R. Periasami, Member (T) For the Appellant : Mr. G. Viswanathan, GM (Legal) For the Respondent : Mr. K.P. Muralidharan, AC (AR) ORDER Order Per D. N. Panda On behalf of the appellant Shri G. Viswanathan, GM (Legal) submits that all the three appeals No. E/485 - 487/2012 covers three Show Cause Notices and the services stated in the table under para-11 of the adjudication order dated 31.08.2012 , are as under:- Sl. No. SCN Date Description of Service Amt of credit disallowed 1 14/2011 dt.9.4.2011 Period 01.04.2010 to 31.01.2011 Banking and other fin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... credit of the service tax paid against Banking and other financial services. Clearing and Forwarding and Customs Clearing Services of CHA are fully attributable to the manufacturing and clearing of finished goods to the destination and bringing raw materials to the factory. Therefore, credit cannot be denied for such services. Insurance Service is availed for the purpose of insurance of the raw materials used in manufacture and other capital assets of the Company. Auction Services are availed to clear the scrap of the factory, which is indispensable to get manufacturing place and place for storing finished goods. Courier service is very much necessary for the business related activities, which was availed by the appellant. Information Technology Service is the service relating to the technological assistance availed for running of the business Photography service was utilised to provide ID cards to the employees and also to utilise the same for other related business activities. Rent a Cab service was utilised for the transport of employees and also for business promotion activities. Travel Booking service was availed for the purpose of busin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 5. Heard both sides and perused the records. So far as the three appeals No. E/485 - 487/2012 is concerned, we have examined each item that was brought to our notice from the Table at para-11 of the adjudication order dated 31.08.2012. We appreciate that the financial service is a covered service under Rule 2 (l) of CVR, 2004. Added to that finance being the necessary input for the purpose of carrying out the manufacturing activity and money is invested to carryout manufacture, credit cannot be denied for such services availed. Clearing and Forwarding and Customs Clearing Services are integrally connected to the business. Procurement of raw materials and finished goods are essence of business. Therefore, the appellant cannot be denied to avail credit in respect of this service. Insurance Service protects the raw materials and finished goods in transit as well as the assets of the company, for which credit cannot be denied for availing this service. Auction service is also integral part of the manufacturing activity since, clearance of the dumped goods having no utility is necessary to be removed in order to store raw materials or finished goods. Therefore, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to store raw materials and other assets of the company. Once there is no evidence found on record demonstrating that such expenses relate to different activity, the appellant is eligible to cenvat credit for this service also. CHA service is also indispensable to carryout clearance of finished goods for which no cenvat credit on this count can be denied. So far as Business Auxiliary Service (BAS) and warehouse service is concerned, that pertains to appeal E/41529/2014. BAS is explained to be relating to supply of labour service for manufacture and included in the definition of input service as per Rule 2 (l) of CCR, 2004, which is relevant to the manufacturing activity and therefore, appellant cannot be denied credit thereon. So far as the warehouse service is concerned, that related to storing of raw materials as well as finished goods either before clearance or after clearance. This itself is indication of its relevance to the manufacturing activity and therefore, credit cannot be denied thereon. For the elaborate reasons stated above, the decision of the adjudicating authority denying Cenvat Credit on above counts is reversed and the appellants are entitled to cenv ..... X X X X Extracts X X X X X X X X Extracts X X X X
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