Contact us   Feedback   Annual Subscription   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2016 (8) TMI 308 - CESTAT CHANDIGARH

2016 (8) TMI 308 - CESTAT CHANDIGARH - 2016 (45) S.T.R. 397 (Tri. - Chan.) - Denial of Cenvat credit - Commercial and industrial construction service, works contract service and architect service - Services used to bring immovable property - Held that:- The land and the factory were required directly and in any event indirectly in or in relation to the manufacture of the final product and for the clearance thereof up to the place of removal - by following the decision of Hon'ble High Court of Pu .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

y sale promotion exercise which is squarely covered within the definition of input service. Therefore, the credit is allowed. - 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 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

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 credit - Manpower recruitment or supply agency service - Service availed for hiring the drivers used by the directors for personal consumption - Held that:- the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

sustainable and the same is set aside. - Denial of Cenvat credit - Renting of immovable property - storage of goods required for providing output service of commercial use of exploitation of event service - Held that:- it is not in dispute that the said service has not been availed in respect of manufacture of goods at Manesar and this is only an alternate argument which is not examined at the lower level. Therefore, the demand is set aside and the matter is remanded back. - Denial of Ce .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

as not been challenged and therefore the credit of the same cannot be denied as the activity of sale promotion falls within the definition of input service. - Denial of Cenvat credit - Manpower recruitment or supply service - Appellant contended that the entire amount of credit was reversed, therefore, no demand should be confirmed - Held that:- this fact needs verification, therefore, the impugned order is set aside and the matter remanded back. - Appeal disposed of - E/57328/2013-EX(DB) - .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

d 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 Hi .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ough the definition of input service is wide, it does not cover services that remotely or in a roundabout way contribute to the manufacture of the final products; that any and every connection however remote and indirect it may be is not contemplated by the definition of input service and that a line has to be drawn somewhere to avoid undue extension of the phrases directly or indirectly and in or in relation to by adopting a common sense approach. Immovable property is neither service nor goods .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

rvice tax. In this regard, the Commissioner referred to a C.B.E&C. Circular, dated 4-1-2008. The Commissioner also held that the Service tax paid on lease rentals is not covered under the input service as the same is not remotely connected to the manufacturing activity and that the nexus thereof with the manufacture of the final product is far-fetched as the same is not used directly or indirectly in or in relation to the final product i.e. metal-sheet. 7. We are entirely in agreement w .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

me being directly or indirectly or in any event in relation to the manufacture of the respondents final product. 8. The land was taken on lease to construct the factory. The factory was constructed to manufacture the final product. The land and the factory were required directly and in any event 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 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

l 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. Learned Counsel fo .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

at since the participants of the race already owners of bike, it cannot be considered as sale promotion event is absurd to say the least. The event is witnessed by number of people and therefore is clearly sale promotion exercise which is squarely covered within the definition of input service. The appeal on this ground is therefore allowed and the credit on the event management service availed for promotional activities in the race organized by the appellants is allowed. (iii) The medical insur .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

is same as required under ESI Act. She also relied on the decision of Hon'ble Karnataka High Court in the case of Sanzen Toyotetsu India (P) Ltd.-2011 (23) STR 444 (Kar) wherein the Hon'ble High Court has observed as follows:- 14. In so far as Insurance coverage to the employees is concerned in the course of employment if the employees suffer injury or dies, there is a vicarious liability imposed on the employer to compensate the employee. If the employer employs its own transporta .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ces, 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 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

insurance is strictly in terms of section 38 of ESI Act. In terms of the decision of Hon'ble Karnataka High Court (supra), so long as the insurance is in terms of section 38 of ESI Act the credit of the service tax paid is allowed. The appeal on this count is allowed. (iv) The Outdoor catering service: 5.1. The appellants have admitted the liability of service tax on outdoor catering service, however, have disputed that the final demand confirmed by the Commissioner as the Commissioner faile .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

nged the demand of ₹ 6,19,767/-. The demand was confirmed on the ground that the cars were used by the employees who were not involved in the manufacturing of the goods. It was argued that the appellants have reversed the credit for service tax in respect of man power recruitment services availed for hiring the drivers as some drivers were used for non-official purposes which proves that these cars were used for non official purposes. 6.2 Learned Counsel admitted that after 1.4.2011, the c .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

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. (vi) Business support service: 7.1 The credit on business support service used towards data entry of records of the company has been denied on the ground that the data entry service has been used for host of activities which may not be related to the manufacture. 7.2 We find that the accounting is specifically covered within th .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

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 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

used in relation to manufacture of goods. 9.2 Learned Counsel for the appellant argued that the service was availed for Chennai and they were registered in Chennai as service provider. The service was availed for providing output service for Chennai office and therefore availing the credit by the appellant was merely a technical error. She clarified that the appellants were also registered as input service distributors in the Manesar. Therefore, the credit was availed by them in respect of servi .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

t at his level. (ix) Convention services: 10.1 The notice also seeks to recover the credit taken on Convention services used for meeting the technicians and mechanics who provide after sale service on the ground that it has no relation with the manufacturing of the goods. After sale service is post manufacturing activity provided from the dealer's premises and after sale service are provided to the customers on payment of certain amount. In such circumstance, it cannot be said that the said .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

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 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version