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Godrej & Boyce Mfg. Co. Ltd. Versus Commissioner of Central Excise, Chennai

2016 (9) TMI 538 - CESTAT CHENNAI

Cenvat credit - Service Tax paid on input services - Commissioning and installation service - Held that:- the said services are employed only to install the final product at the premises of the customer and only upon such installation, the final product would become operational and purpose of manufacture would fructify. Therefore, the appellant cannot be faulted with and the order of the Learned Additional Commissioner in appellant's own case whereby the learned adjudicating authority has allowe .....

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urt in the case of C.Ex & ST, LTU Chennai Vs Rane TRW Steering Systems [2015 (4) TMI 704 - MADRAS HIGH COURT] as well as decision in the case of Hinduja Foundries Ltd. Vs CCE, Chennai-I [2016 (4) TMI 326 - CESTAT CHENNAI], I hold that credit of Service Tax paid on such services cannot be denied. - Cenvat credit - Air travel services - Held that:- when it is not in dispute that the said services were employed only for the company's executives to travel to achieve the business objective and th .....

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or the employees to travel to the customer's site in order to install the goods and without such installation, the product cannot be functional and such services are not used for the personal consumption of the employees - Held that:- the nature of the business of the appellants is such that employees need to travel to the customer's site to install the products and only on such installation the products would become operational. The very purpose of manufacture of such products is only to benefi .....

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travel services and rent-a-cab services. The penalty is also set aside. - Decided in favour of appellant - Appeal No. E/41858/2015 - Final Order No.41527/2016 - Dated:- 8-9-2016 - Shri P.K.Choudhary, Judicial Member Ms. V. Ubhaya Bharathi, Advocate Ms. Minchu Mariam Punnoose, Advocate For the Appellant Shri S. Govindarajan, AC (AR) For the Respondent ORDER M/s Godrej & Boyce, the appellants herein have filed this appeal against Order-in-Appeal No.115/2015 (CXA-II) dated 02.06.2015. 2. The br .....

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definition in Rule 2(l) of CCR and are eligible to avail credit of the services. The Additional Commissioner disallowed the credit on input services to the extent of 25,49,624/- as per the chart given under and also imposed penalty of ₹ 2,00,000/- S. No Input Services Amount 1. Rent-a-cab Services Rs.25,234/- 2. Air Travel Charges Rs.18,389/- 3. CHA Services ₹ 4,69,500/- 4. Sweeping & Cleaning charges ₹ 2,36,285/- 5. Commissioning & Installation Rs.18,000,216/- The Lear .....

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the other was dealt with and they submitted that with respect to Commission and installation services, the very activity of manufacture of the final products would be complete only when the goods are installed in the premises of the customer and therefore without installation, manufacturing process would be incomplete and manufacture does not stop with emergence of the final product alone. Thus, commissioning and installation without which manufacturing activity would not get completed, squarel .....

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ame, when included in the value of the final product, credit on such services cannot be denied and placed reliance on the decision of the Hon'ble Madras High Court in the case of Commissioner of C.Ex & ST, LTU Chennai Vs Rane TRW Steering Systems Ltd and the decision of this Hon'ble Court in the case of Hinduja Foundries Ltd. Vs Commissioner of C.Ex, Chennai-I. 3.1 The Ld. Counsels further submitted that with respect to air travel services, such services were employed only for the Co .....

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Technologies (I) Ltd. Vs CCE, Raigad. They submitted that with respect to Rent-a-cab services, such services were used for transportation of their employees from the factory to the customer's premises for the purpose of installation of the final products at the customer's premises and placed reliance on the decision of this Hon'ble Tribunal in the case of BSNLVs CST Chennai-II and the decision of the Hon'ble Madras High Court in the case of CCE, Chennai-II Commissionerate (v) Hyd .....

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of commissioning and installation, the said services are employed only to install the final product at the premises of the customer and only upon such installation, the final product would become operational and purpose of manufacture would fructify. Therefore, the submission of the Learned Counsel for the appellant cannot be faulted with and the order of the Learned Additional Commissioner in appellant's own case whereby the learned adjudicating authority has allowed the credit on Commissi .....

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s Rane TRW Steering Systems - 2015 (39) STR 13 (Mad) as well as decision in the case of - Hinduja Foundries Ltd. Vs CCE, Chennai-I - 2016 (42) STR 494 (Tri Chennai), I hold that credit of Service Tax paid on such services cannot be denied. 7. As regards Air travel services, when it is not in dispute that the said services were employed only for the company's executives to travel to achieve the business objective and the same has not been used for the employee's personal needs, credit of .....

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