TMI Blog2016 (8) TMI 308X X X X Extracts X X X X X X X X Extracts X X X X ..... Denial of Cenvat credit - Medical insurance and life insurance service - Held that:- in terms of the decision of Hon'ble Karnataka High Court in the case of CCE, Bangalore-III, Commissionerate vs Sanzen Toyotetsu India (P) Ltd. [2011 (4) TMI 201 - KARNATAKA HIGH COURT ], so long as the insurance is in terms of section 38 of ESI Act the credit of the service tax paid is allowed. Denial of Cenvat credit - Supply of tangible goods - Cars used by the employees who were not involved in the manufacturing of goods - Held that:- the exact nature of use of the cars and purpose for which they have been used has not been examined and certain bald statements have been made by both sides in respect of such use. Therefore, to determine the exact use, the matter is remanded to the original authority for determination of the facts and re-adjudication. Denial of Cenvat credit - Business support service - data entry service used for host of activities which may not be related to the manufacture - Held that:- the accounting is specifically covered within the definition of input service and therefore the credit on business support service of data entry availed is allowed. Denial of Cenvat c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Honda Motorcycle Scooter India Pvt. Ltd. were denied the credit on certain services and the demand was confirmed. The appellants are challenging the following demands raised against them: (i) Commercial and industrial construction service, works contract service and architect service used for design, construction and structure for marshal conveyor project. 2. The credit was denied relying on the circular dated 4.1.2008 and on the decision of the Tribunal in the case of Vandana Global Ltd.-2010 (253) ELT 440. The Commissioner observed that services are used to bring civil structure which is immoveable property and therefore the credit of such service cannot be allowed. 2.1. Learned Counsel argued that their case is covered by the decision of Hon'ble High Court of Punjab and Haryana in the case of Bellosonica Auto Components India Pvt. Ltd.-2015-VIL-300-P H-ST wherein the Hon'ble High Court has observed as follows: 6 . The department contended that the said services were not eligible for Cenvat credit and accordingly issued show cause notice for recovery of the credit along with interest and for imposition of penalty. The Commissioner confirmed the demand ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t indirectly in or in relation to the manufacture of the final product and for the clearance thereof up to the place of removal. But for the factory the final product could not have been manufactured and the factory needed to be constructed on land. The land and the factory are used by the manufacturer in any event indirectly in or in relation to the manufacture of the final product, namely, metal-sheets. The respondents case, therefore, falls within the first part of Rule 2(l) aptly referred to by Mr. Amrinder Singh as the means part. 2.2. We find that the issue at hand is squarely covered by the decision of jurisdictional High Court. Following the ratio of the same, the credit on Commercial and industrial construction service, works contract service and architect service used for design, construction and structure for marshal conveyor project is allowed. (ii) The Event Management services: 3. The appellants were denied the credit on event management services used for sale promotion event on the ground that the participants in the race organized by the appellants are already owners of bike and therefore, this cannot be considered as sale promotion exercise. 3.1. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... takes care of the health of the employees also and casts an obligation on the employer to provide insurance services. Under these circumstances, this Group Insurance Health Policy though is also a welfare measure is an obligation which is cast under the Statute that the employer has to obey. Section 38 of the Employees State Insurance Act, 1948, mandates that subject to the provisions of the Act, all employees in factories or establishments to which this Act applies shall be insured in the manner provided by this Act. May be the employees also have to contribute but the employer is under an obligation to take an insurance policy and contribute his share. Therefore, the said Group Insurance Health Policy taken by the assessee is a service which would constitute an activity relating to business which is specifically included in the input service definition. 4.3 Learned AR argued that apart from insurance the employees are also availing the medical allowances and therefore medical insurance risk coverage is nothing but welfare of the employees. 4.4 We have considered the rival submissions. Learned Counsel has argued that the insurance is strictly in terms of section 38 of ESI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he manufacture. 7.2 We find that the accounting is specifically covered within the definition of input service and therefore the credit on business support service of data entry availed is allowed. (vii) Manpower recruitment or supply agency service:- 8.1 The credit on Manpower recruitment or supply agency service availed for hiring the drivers has been denied on the ground that the same are used by the directors for personal consumption. While the appellants have admitted that part of the service has been used for private purposes and they voluntarily reversed the credit of the same. It is seen that the appellants have claimed that the credit of the said services in respect vehicle used by the directors, deputy directors, advisors, vice president. The appellants relied on the decision of the Tribunal in the case of Utopia India Pvt.Ltd.-2011 (23) STR 25 (Tri.) and Brakes India-2010 (19) STR 524 (Tri.-Bang.). 8.3 We find that both the decisions squarely covers the issue, We find that the impugned order does not record any evidence or finding to the effect that the directors and also the employees who used the said services were not involved directly or indirectly in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , they have erroneously submitted as technicians and mechanics was in relation to business. We find that the facts were not correctly presented before the original authority and therefore, we set aside the impugned order in respect of this service and remand the matter to the Commissioner for reconsideration. (x) Photography services: 11.1 The credit of services of Photography services used for taking pictures of manufactured products for use of advertisement and R D was denied on the ground that it has no relation with the manufacturing activity. 11.2 Learned Counsel argued that the said services were used in the product development and improvement of products and therefore, integrally part of the input service definition. 11.3 We find that the services are clearly used for development and improvement of manufactured products and therefore the credit of the same is admissible to the appellants. (xi) Hotels, inns, club or guest house services: 12.1 The credit on Hotels, inns, club or guest house services used by the company for stay of employees when they are travelling for the purposes of sales promotion was denied relying on the circular No.843/2011 da ..... X X X X Extracts X X X X X X X X Extracts X X X X
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