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ELIGIBLE INPUT SERVICES FOR TAKING CREDIT AS DECLARED BY TRIBUNALS/HIGH COURTS

Cenvat Credit - By: - Mr. M. GOVINDARAJAN - Dated:- 21-8-2016 Last Replied Date:- 31-8-2016 - CENVAT Credit Rules, 2004 allows a manufacturer or output service provider to take credit on service tax paid on input services and adjusts the same against the payment of central excise duty/service tax. Rule 2(l) defines the term input service . The readers may aware the interpretation of the said Rule leads to many a litigation before various forums, such as Commissioner (Appeals)/CESTAT/High Court/S .....

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nputs that same to be used in or in relation to manufacture of dutiable final products, is also applicable to input services, as held in Maruti Suzuki India Limited V. Commissioner of Central Excise, Customs & Service Tax, Hyderabad- II - 2016 (1) TMI 291 - CESTAT NEW DELHI. Health and fitness services In Sitel India Limited V. Commissioner of Central Excise, Mumbai - II - 2016 (3) TMI 203 - CESTAT MUMBAI the Tribunal held that in the present case the appellant is providing the BPO services. .....

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roviding better quality of output service. It is to be kept in the mind that business organization is not meant for an entertainment of the employees but the ultimate objective is to achieve optimum performance of the employees. For that purpose the health and fitness services are input service eligible for CENVAT credit. Transport of goods by Road In Sitel India Limited (supra) the transportation was used by the appellant for the various activities such as transportation of equipment like compu .....

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of electricity expense was denied only on the ground that the service was received by the landlord and not by tenant i.e., the appellant. The Tribunal surprised that when the premises was occupied by the appellant and day-to-day repairs and maintenance are carried out in that premises, obviously, the said services are received and used by the tenant only and not by the landlord. The use of electricity is directly used by the BPO service provider in order to carry out their day-to-day business a .....

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te area. Therefore the Tribunal held that the construction of the dormitory for this purpose of stay or technicians/engineers is integrally connected with the manufacturing of the appellant. The appellant is entitled to take CENVAT credit on construction services. Management consultant services In Commissioner of Central Excise, Bangalore V. Sanmar Specialty Chemicals Limited - 2016 (6) TMI 771 - KARNATAKA HIGH COURT the High Court held that the Management Consultancy services obtained for infus .....

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reach the ultimate result of manufacturing activity. The Tribunal has rightly found that the input tax credit was available and there is no ground to interfere with the orders of the Tribunal. Disposal of Hazardous waste In India Pesticides Limited V. Commissioner of Central Excise & Service Tax, Lucknow - 2016 (8) TMI 724 - CESTAT ALLAHABAD the Tribunal found that there is no dispute as regards the incurring of transport expenses for disposal of the hazardous waste. Further there is no disp .....

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Excise, Delhi - III V. Exide Industries Limited - 2014 (5) TMI 1114 - CESTAT NEW DELHI the appeal relates to availability of CENVAT credit of service tax paid on repair and maintenance of the building/plant/road etc., The Tribunal found that the definition of input service as contained in Rule 2(l) specifically includes services used in relation to modernization, renovation or repairs of a factory. The said definition was amended with effect from 01.04.2011 where in construction of the factory .....

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fect from 01.04.2011. That is only in respect of insurance coverage given to employees during journey availing LTC. But that had not taken away the welfare of the workers under the Factories Act, from its fold if insurance service is availed to overcome difficulties under Workmen Compensation Act, in case of hazard. Accordingly the appellant s claim of CENVAT credit on service tax paid to avail insurance service for employees employed in factory is permissible. Pest control to main property of t .....

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such canteen services availed. The Tribunal further directed that contribution recovered from the employees is to be deducted. GTA Service In Commissioner of Central Excise, Raipur V. Drolia Electrosteels (P) Limited - 2015 (12) TMI 161 - CESTAT NEW DELHI the credit on GTA was denied on the ground that the service provider issued consolidated invoices for transportation, loading and unloading charges and therefore such services received are not to be treated as GTA service but cargo handling se .....

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ellant. The Revenue is of the view that discharging of service tax by the intermediary shall not entitle the appellant to the CENVAT credit. The Tribunal held that the services availed by the appellant does not appear to be alien to its business. There was an advertisement made for the appellant through broadcasting service which is not in dispute by the Revenue. Such service was provided by a third party for the appellant through an intermediary. What is the requirement of law is that there sho .....

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sed for providing output service, the applicant is eligible to avail CENVAT credit. In Kernex Microsystems (India) Limited V. Commissioner of Central Excise, Customs & Service Tax, Hyderabad - II - 2015 (12) TMI 1106 - CESTAT BANGALORE the Tribunal held that the services of advertisement, DVD film production, campaigning in electronic and print media, etc., availed for collecting capital through IPO for expansion of manufacturing facilities by setting up of a new unit are covered within the .....

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ennai - II - 2016 (6) TMI 161 - CESTAT CHENNAI Financial Services - Finance being the necessary for input for the purpose of carrying out the manufacturing activity and money is invested to carry out manufacture, credit cannot be denied for such services availed. Cleaning and forwarding agents and customs clearing services - These services are integrally connected to the business. Procurement of raw material and finished goods are essence of business. Credit cannot be denied. Auction Service - I .....

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such service, there may not be the possibility of movement of documents as well as goods with least cost. The appellant is entitled to CENVAT credit on this count. IT Service - It is an integral part of the business activity to reduce paper work and to carry out the business efficiently and effectively. Maintenance of software is also an integral part of the business. The appellant cannot be denied CENVAT credit. Photography services - it is used to issue ID cards to the employees and other diff .....

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