TMI Blog2016 (9) TMI 133X X X X Extracts X X X X X X X X Extracts X X X X ..... ervice tax credit on Brokerage and Commission services - appellant providing residential accommodation to ex-pat employees voluntarily and has no direct and indirect relation to the manufacture of final products which are cleared on payment of duty - Held that:- in view of the decision of tribunal in the case of M/s. HEG Ltd. Vs. CCE, Raipur [2010 (6) TMI 306 - CESTAT, NEW DELHI], wherein it has been held that brokerage/commission paid is a business activity and eligible for input service tax credit, the impugned order holding it as a voluntary service and has nothing to do with the business of the appellant is wrong and not sustainable in law. - Decided in favour of appellant with consequential relief - E/2995/2011, E/2996/2011, E/2997/20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nufacture of auto components and on the basis of the audit objection, show-cause notices were issued demanding interest on credit reversed. The Order-in-Original was passed confirming the demand and aggrieved by the Order-in-Original the appellant filed appeals before the Commissioner who upheld the Order-in-Original and hence the present appeals. 2. Heard both the parties and perused the records. 3. Learned counsel for the appellant submitted that the impugned order is not sustainable in law as the same has been passed ignoring the judgments of the Tribunal and the High Court. He further submitted that the credit taken was reversed after being pointed out. As the credit taken was reversed before utilization, therefore no interest is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... redit Rules 2004 as it stood during the relevant period. Rule 14. Recovery of Cenvat credit wrongly taken or erroneously refunded. Where the cenvat credit has been taken or utilized wrongly or has been erroneously refunded, the same along with interest shall be recovered from the manufacturer or the provider of the output service and the provisions of Sections 11A and 11AB of the Excise Act or sections 73 and 75 of the Finance Act, shall apply mutatis mutandis for effecting such recoveries. 5. The issue for determination before me in these two appeals is whether the appellant is liable to pay interest on the cenvat credit wrongly taken, though the same is reversed before utilization of the credit. The Hon ble Apex Court in Union of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ound that the appellant is providing residential accommodation to ex-pat employees voluntarily and it has no direct and indirect relation to the manufacture of final products which are cleared on payment of duty. Learned counsel for the appellant submitted that the appellant is under obligation to provide residential accommodation to the ex-pat employees hired from their overseas joint venture partner as per the arrangement made between the appellant and their overseas joint venture partner. The appellant carry out accommodation search for the ex-pat employees well in advance by using the services of real estate service and once the accommodation is crystallized, brokerage and commission would be paid to the real estate agents. The learned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n relation to manufacture and clearance of excisable goods in the verbatim of Rule 2(l)(ii) of Cenvat Credit Rules 2004 has wider connotation and applicability and further implies that any input services used directly or indirectly or in or in relation to manufacture and clearance of excisable goods would qualify for cenvat credit to a manufacturer. Further the input service has due nexus with the business of manufacture of excisable goods even though may not be directly related to their manufacturing activity but the same is linked with the business of the appellant directly. In order to substantiate his submission that the appellant is eligible for input service tax credit on brokerage services, relied upon the decision of the Tribunal in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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