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M/s Eicher Motors Limited Versus CCE, Indore

2016 (8) TMI 7 - CESTAT NEW DELHI

Cenvat credit - various input services - Held that:- all the services for which credit have been claimed under Rule 2(l) of the Cenvat Credit Rules, 2004 already stand allowed in various decisions. Hence, these issues are no longer res-integra. - Decided in favor of assessee. - Excise Appeal No. 824 of 2009 - Final Order No. 52437/2016 - Dated:- 29-6-2016 - Ms. Archana Wadhwa, Member (Judicial) and Mr. V. Padmanabhan, Member (Technical) Sh. B. L. Narsimhan, Advocate for the appellant Sh. Yogesh .....

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t services disallowed by the Commissioner in the impugned order, has been allowed by Tribunal and High Courts. They have also cited various case laws under which such credits have been allowed for the various services. 3. Heard ld. Advocate Sh. B. L. Narasimhan for the appellant and ld. DR Sh.Yogesh Agarwal for the Revenue. 4. Since the dispute centers around various services claimed as input services, it is useful to set below the definition of input service given in Rule 2(l) of the Cenvat Cre .....

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ises, advertisement or sale promotion, market research, storage upto the place of removal, procurement of inputs, activities relating to business, such as accounting, auditing, financing, recruitment and quality control, coaching and training, computer networking, credit rating, share registry, and security, inward transportation of inputs or capital goods and outward transportation upto the place of removal . 5. The main submission of the appellant in the appeal is that the definition of input .....

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ces forms part of the cost of the final product. The appellant relied upon various judgments of the Tribunal/ High Courts wherein it was held that the expenses related to the services similar to those covered in the instant case have been considered as the expenses related to business and for the betterment of the business, eligible for deduction as expenses under the provisions of the Income Tax Act. In particular, they have relied on Coca Cola India Pvt. Ltd., vs. CCE, Pune-III - 2009 (242) EL .....

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nied the benefit of cenvat credit in the impugned order for the reason that these services have been used in relation to complete vehicles whereas the appellant is a manufacturer only of chassis. i) Advertisement Agency Services ii) Market Research iii) Telephone Tours & Travel Services iv) Business Auxiliary & Business Promotion Services v) Commission Agent Service vi) Event Management Services vii) Commercial Training and Coaching Services viii) Banking & Financial Services ix) Sec .....

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mately manufactured and cleared by the bottlers. The Hon ble High Court took the view that all such activities relating to business are covered under input service provided there is relation between manufacture of concentrate and such activity. The Hon ble High Court held as follows: 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 p .....

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l product . On the admissibility of advertisement services, the appellant has also relied on the following case laws: CCE vs. HCL Technologies Ltd. -2016 (42) STR 48 (Tri. Del.) Greaves Cotton Ltd. vs. CCE, Chennai-II & IV-2015 (37) STR 395 (Tri. Chennai) Agriculture Products Market Committee vs. CCE, Vadodara-II - 2013 (30) STR 558 (Tri. Ahmd.) The above decisions squarely cover the credit availed on advertisement agency service even though such advertisements are for the complete vehicles, .....

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the reason that such services have been availed in the regional office and have also been provided to the employees of the appellant in Regional offices, guest house and depots. We find that in addition to the decision in the Coca Cola India case, such services have also been held to be valid input services in the following decisions: Multiflex Laxmi Print Ltd. vs. CCE - 2016-TIOL-1544-CESTAT-MUM Semco Electric Pvt. Ltd. vs. CCE, Pune-I- 2013 (30) STR 572 (Tri. Mumbai) Telenet Systems Pvt. Ltd. .....

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rgan Services (I) Pvt. Ltd. vs. CCE -2016 (42) STR 196 (Tri. Mum.) (iv) Commission agent service for sales of the complete vehicle have been specifically allowed in the case of Carrier Airconditioning & Refrigeration ltd. vs. CCE - 2016 (41) STR 1004 (Tri.Del.) (v) Event Management services which were used for road show, product launch etc. have been held to be allowed input services in the following cases: Precision Wires India Ltd. vs. CCE - 2011-TIOL-1541-CESTAT-AHM IBM India Pvt. Ltd. vs .....

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and Meghmani Dyes & Intermediates Ltd. vs. CCE, Ahmedabad - 2013 (32) STR 671 (Tri. Ahmd.). (vi) Security Agency Service used at regional offices also stands specifically allowed in the case of National Engineering Industries Ltd. vs. CCE, Jaipur - 2013 (30) STR 511 (Tri. Del.). (vii) Mandap Keeper Service which was used in connection with annual day meet for celebration have been disallowed, considering it as welfare activity not related to manufacture. We find that similar services have b .....

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