Subscription   Feedback   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Articles Highlights TMI Notes SMS News Newsletters Calendar Imp. Links Database Experts Contact us More....
Extracts
Home List
← Previous Next →

M/s. Honda Motorcycle & Scooter India Pvt. Ltd. Versus CCE, Delhi-III

2016 (8) TMI 308 - CESTAT CHANDIGARH

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 Punjab & Haryana in the case of Bellosonica Auto Components India Pvt. Ltd. [20 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

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 is allowed. - Denial of Cenvat credit - Supply of tangible goods - Cars .....

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 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 issue is squarely covered by the decision of Tribunal in the case of Utopia I .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

g 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 Cenvat credit - Photography services - taking pictures of manufactured products .....

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 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) - Final Order No. 60151/2016 - Dated:- 23-5-2016 - Mr. Ashok Jindal, Member (Ju .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

onveyor 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 Ind .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

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 and, therefore, input credit cannot be taken. Although civil construction wo .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ar, 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 with Mr. Amrinder Singh s submission on behalf of the respondents, that the 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

e 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 and the factory needed to be constructed on land. The land and the factory ar .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ervice 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 for the appellants argued that event organized for the participant of the race .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

nsidered 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 insurance and life insurance service: 4.1 The credit on the medical insurance 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

9;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 transportation facility in order to cover the risk which also includes the risk of work .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

n 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 take .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

sion 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 failed to given credit of certain amount which they have already paid. Since there .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

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 credit on these services cannot be availed. However, she argued that prior to .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ter 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 the definition of input service and therefore the credit on business support se .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

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 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

nt 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 service used in respect of taxable service provided at Chennai and they could have .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

er 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 services are in relation to manufacture of goods. 10.2 It was argued that by .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

acts 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 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

 

 

 

 

 

what is new what is new
  ↓     bird's eye view     ↓  


|| 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