TMI Blog2016 (8) TMI 719X X X X Extracts X X X X X X X X Extracts X X X X ..... can be drawn is that they have provided services as per the invoices raised by them. Revenue has not been able to adduce any evidence that there is no service rendered. The said issue, whether the transactions are services or not, should be agitated by the department against service providers viz. ARBL and MPPL, from whom the service tax has been collected. Credit cannot be denied at the service recipients end, alleging that no service has been provided. - Decided in favor of assessee. - Appeal No. E/26835 to 26837/2013 - ORDER No. A/30178-30180/2016 - Dated:- 16-2-2016 - Ms. Sulekha Beevi, C.S. Member(Judicial). Ms. Kamana Srikanth, Advocate for the Appellant. Shri Deepak, AR for the Respondent. ORDER: 1. The appellan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ices and demanding recovery of the same along with interest and proposing to impose penalty. After due process of law, the original authority confirmed the demand along with interest and imposed equal amount of penalty. The appellants carried the issue in appeal and vide order impugned herein the Commissioner (Appeals) upheld the demand, interest and penalty. Being aggrieved, the appellants have filed the present appeal. 3. On behalf of the appellant, the learned counsel Ms Kamana Srikanth explained that the services were received by appellants from ARBL and M/s Mangal Precision Products Ltd.(MPPL) at their branch offices in Chennai, Hyderabad and Mumbai. She submitted that ARBL and MPPL provided office space on a rental basis to the app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ome common expenditure between the group companies are being shared and these transactions did not qualify as input service as defined under Rule 2(l) of Cenvat Credit Rules, 2004. He pointed out that in the invoices, though the service tax is paid, under the category of Business Auxiliary Services it can be seen that the expenses for electricity charges, e-mail expenses marketing and sale promotion expenses, office maintenance expenses, postage and telegram, printing and stationery, rental and taxes, staff welfare expenses subscription, periodical expenses and telephone expenses are shared between the group companies. That, there is no relationship of service provider and service recipient between ARBL/MPPL and the appellants. Rule 4(A) of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... here is no rendering of services at all. In this regard it would be appropriate to mention it would be appropriate to mention, the observations made by the Tribunal while considering the Stay Application vide Order dated 07-02-2014. The same is reproduced as under: ..Even though it is a sharing of expenses of the branch offices, the fact remains that the branch office belongs to one of the group companies and the owner of the branch among the group companies provides the services to the appellant for which the service tax is paid and charged to the appellant. On going through the records and submissions, we find that the services have a nexus to the appellants activities and therefore have to be considered as input services. The depart ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Vs Stanzen Toyotetsu India (P)Ltd. 2011(23) STR 444(Kar) the Hon ble High court while considering the eligibility of credit on input service observed as under: the services mentioned in the section are only illustrative and it is not exhaustive. Therefore, when a particular service not mentioned in the definition clause is utilized by assessee/manufacturer and service tax paid on such service is claimed as Cenvat credit, the question is what are the ingredients that are to be satisfied for availing such credit. If the credit is availed by the manufacturer, then the said service should have been utilized by the manufacturer directly or indirectly in or in relation to the manufacture of final products or used in relation to activities rel ..... X X X X Extracts X X X X X X X X Extracts X X X X
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