9911796707
TMI Blog2016 (7) TMI 1198X X X X Extracts X X X X X X X X Extracts X X X X ..... notice was issued alleging irregular availment of credit on inputs, capital goods and input services to the tune of Rs. 11,49,720/-. After due process of law, the original authority vide order dated 30/11/2011 allowed part of the credit. Against the confirmation of demand of Rs. 3,18,950/-, the appellants filed appeal before the Commissioner(Appeals). As per the order impugned herein, the Commissioner(Appeals) allowed part of the credit but disallowed credit on capital goods (Rs.50,341/-) and input services (Rs.59,997/-). The present appeal is filed challenging the disallowance of such credit on capital goods and input services. 3. On behalf of the appellant, the learned counsel submitted that credit on air receiver and corrugated hoses a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t availed on Air receiver as capital goods. 4. The learned counsel, then placed his arguments with regard to the disallowance of credit on input services. The services of pay roll processing and collection of C Forms has denied by the authorities below stating that these services do not qualify as input services. The learned counsel submitted that the appellants had outsourced the work of payroll processing and service tax was paid on such services. Again, in relation to payment of Central Sales Tax, the appellant had to obtain the C Forms, for which an agency was entrusted to get the C Forms within time. These services are integral to the accounting of the appellants business and fall within the definition of input service. These Busines ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sible. 7. The next issue is with regard to disallowance of credit on input services. The period involved is April 2006 to January 2011. The contention of the appellant counsel that the service of payroll processing and C Form collection service is connected to the activity of accounting is not without substance. The definition of input service, as contained in Rule 2(l) of CENVAT Credit Rules, 2004 speaks about services used in relation to activities relating to business such as accounting, auditing, financing etc. Payroll processing of employees is part of maintaining proper accounts. So also C Form has to be collected and submitted which is necessary for upkeep of tax accounting. As such, I hold that the credit on these input services is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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