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Sundram Fasteners Ltd. Versus Commissioner of Central Excise, Chennai

2016 (9) TMI 326 - CESTAT CHENNAI

Cenvat credit - Auction Service - Service tax paid during the period from March 2012 to December 2012 - service used for clearing the waste and scrap and used material available in the factory - received to ensure free flow of production material service - Held that:- in the case of Mangalam Cement Ltd. Vs CCE & ST Jaipur [2015 (9) TMI 942 - CESTAT NEW DELHI], the Tribunal has held that sale of waste and scrap which is arising out of manufacturing of final product is part of the business of manu .....

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ice availed by a manufacturer is not an eligible input service for the purpose of availing service tax credit. Therefore, by following the ratio, I hold that cenvat credit availed by the appellant-manufacturer on the service tax paid on Rent-a-cab service for picking up and dropping down of its employees to the factory and back is not proper and denied as the said service is not an eligible input service and credit is not admissible to the appellant. - Cenvat credit - Courier Service - Servi .....

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e - Service tax paid during the period from March 2012 to December 2012 - Held that:- the Tribunal in the case of Sterlite Industries India Ltd. [2015 (9) TMI 1399 - CESTAT CHENNAI], has held that foreign exchange money service is inextricably connected with business and relevant for export and import and hence eligible to input service credit. Therefore, by following the same ruling, I hold that credit on this service is not deniable. - Cenvat credit - Mobile Telephone Service - Service tax .....

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e period from March 2012 to December 2012 - service relates to sharing of registry documents, export invoice etc. by the appellant - Held that:- the activity of the appellant of sharing of registry documents, export invoices etc. has a direct nexus with the manufacture and clearance of the final product inasmuch as there can be no clearance without these documents. Hence appellants are entitled to this credit. - Cenvat credit - Travel Agency Service - Service tax paid during the period from .....

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credit is allowable. - Cenvat credit - Certification Audit Service - Service tax paid during the period from March 2012 to December 2012 - service was received for obtaining ISO certificates - Held that:- this Tribunal in the case of Rotork Control (India) Pvt. Ltd. Vs CCE Chennai [2010 (6) TMI 336 - CESTAT, CHENNAI], has held that consultancy services are essential inputs in relation to the manufacturing activity as such services have been availed in obtaining ISO certification of the asses .....

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RDER M/s. Sundaram Fasteners Ltd., the appellant herein, are engaged in the manufacture of Radiator Caps falling under Chapter 87 of the Central Excise Tariff Act, 1985. On scrutiny of their records, it was noticed that they had taken credit of service tax paid on various inadmissible services as the same were not related to the manufacture of final products during the period from March 2012 to December 2012. Hence a show cause notice dt. 25.3.2013 was issued proposing to disallow and recover th .....

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e the penalty and confirming the demand and interest. Hence the present appeal. 2. Ld. Counsel submits that the various services were received by the appellant on which service tax credit was availed during the period March 2012 to December 2012 of which the following services are in dispute in the present appeal. Ld. Commissioner (Appeals) granted relief on Courier service and Software Maintenance Service in the impugned order and denied credit on the following services :- 1. Auction Service 2. .....

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ule 2 (l) of CCR 2004 for "input service" and the decided case laws on the subject. Therefore, the purpose for which the above services were availed have been explained before the authorities, disallowance of credit is not sustainable. 2. Ld. Counsel relied on the following decisions :- (i) Mangalam Cement Ltd. Vs CCE & ST Jaipur 2015 (38) STR 635 (Tri.-Del.) on Auction Service (ii) Rotork Control (India) Pvt. Ltd. Vs CCE Chennai 2010 (20) STR 684 (Tri.-Chennai) on Certification Au .....

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phone service (viii) Ultratech Cement Ltd. Vs CCE Jaipur 2015 (40) STR 523 (Tri.-Del.) on Printing Work Service 3. Heard Ld. A.R who reiterates the impugned order. 4. After hearing both sides, and on perusal of records, I find that all the above services were received by the appellant during the period March 2012 to December 2012. Appellants in their reply dt. 27.05.2013 have clearly brought out the purposes for which the said services were utilized by them. 1) Auction Service :- This service w .....

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I hold that Auction Service is eligible input service and credit is permissible. 2) Cab Service :- As regards eligibility of input service tax credit on Rent-a-cab service availed by the manufacture of final products, I find that this very Bench in the case of S.K.D. Lakshmanan Fireworks Industries Vs C.C.E. & S.T., Tirunelveli 2016 (42) STR 359 (Tri.-Chennai) has held that Rent-a-cab service availed by a manufacturer is not an eligible input service for the purpose of availing service tax .....

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ce availed by a service provider is an eligible input service for the purpose of availing credit whereas in the instant case, the appellant is a manufacturer of final products and not a service provider. Therefore, the case law relied upon by learned advocate is not relevant and not applicable to the facts of this case. Following the ratio of this Bench decision (supra), I hold that cenvat credit availed by the appellant-manufacturer on the service tax paid on Rent-a-cab service for picking up a .....

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nnot be disallowed as the service utilized by appellant is in relation to manufacture. 4. Foreign Exchange Service : The Tribunal in the case of Sterlite Industries India Ltd. (supra), has held that foreign exchange money service is inextricably connected with business and relevant for export and import and hence eligible to input service credit. Following the same ruling, I hold that credit on this service is not deniable. 5. Mobile Telephone Service: I am of the view that the telecommunication .....

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ent Ltd. Vs CCE Jaipur (supra) wherein at para-7 it is held as under :- 7. For availing credit on printing of calendar, greeting cards, diaries, etc., the appellant used these services for advertisement purposes of their products, therefore, these are integral part of their sale promotion. I accordingly, hold that the appellant is entitled to take credit on printing of calendar, greeting cards, diaries, etc. Further I hold that for organizing award functions, these activities are parts of their .....

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