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2016 (9) TMI 680 - CESTAT HYDERABAD

2016 (9) TMI 680 - CESTAT HYDERABAD - 2017 (47) S.T.R. 136 (Tri. - Hyd.) - Cenvat Credit - various input services - nexus with manufacturing activity - gardening services, booking binding services, ticket booking services, e-filing services, repairs to culvers & piling works, business improvement services/catering/restaurant services, painting services, mechanical repairs to tanks, washing of lab coats/ laundry services, crane hiring services, foreign payments, data entry services, consultancy s .....

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d, Advocate for the Appellant. Shri Arun Kumar, Deputy Commissioner(AR) for the Respondent. ORDER Brief facts of this case are as under:- a. The Appellants are engaged in refining and clearing diverse petroleum products. During the period January 2014 to September 2014, (M/s HPCL, Visakh Refinery) the Appellants availed Service tax on credit on gardening services, booking binding services, ticket booking services, e-filing services, repairs to culvers & piling works, business improvement ser .....

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ice Tax paid on these items were in no way involved in or in relation to the manufacture by the assessee and it was recorded in the SCN that as per the definitions of CENVAT Credit Rules 2004, these input services were not eligible for CENVAT Credit. b. Adjudicating Authority passed the impugned Order-in-Original dt.19.5.2015 dropping the SCN proposals for recovery of CENVAT Credit of ₹ 3,37,38,040/- being the cenvat credit availed on service tax paid on Vegetation (Gardening), Booking Bin .....

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mp; commissioning and confirming the recovery of CENVAT Credit of ₹ 12,37,341/- being the CENVAT credit availed on service tax paid on the services of Business improvement / convention services, Anti Termite treatment, Interior development, AMC for furniture, Repairs of JCB, Washing of Vehicle, Tanker Agency at Ports, Data entry activities, Airport agency services, Air cargo service, Cleaning of roads & Housing keeping along with interest and imposing equal amount of penalty. c. Aggrie .....

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airs for JCB 6118 (f) Washing of vehicle 3928 (g) Tanker Agency at ports 31271 (h) Data entry activities 78108 (i) Airport agency service, Air cargo service 42998 (j) Cleaning of roads 13601 (k) Housing keeping 4450 12,37,241/- b. As far as a manufacturer is concerned, in the eligibility of CENVAT credit availment on service tax paid on all services (except those that are specifically excluded from the eligibility like civil foundation, specified employee related expenses etc.) that are used in .....

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ase of Ramala Sahkari Chini Mills Limited vs. CCE Meerut / reported in 2010 (260) ELT 321 (SC) where the Court has ruled that as per the language of Rule 2(g) of the CENVAT Credit Rule 2002, the Legislature did not intend to impart the restricted meaning to the definition of inputs for the input services and accordingly referred the matter to Larger Bench. Thus, it is very clear that on the eligibility of availment of CENVAT Credit on input services is concerned, two views are possible and there .....

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credit. Stanzen Toyotetsu India Pvt. Ltd. 2011 (23) STR (444) - CESTAT Decision dated 10.11.2014 (Misc Order No.22917/2014) in their own case where the CENVAT credit was allowed on various services used in Refinery. Balkrishna Industries Ltd Vs. CCE, Aurangabad 2010 (254) ELT 301 (Tri. Mum) where CENVAT credit availed on Housekeeping services was ordered to be eligible for CENVAT credit. 3. On behalf of the Department, learned AR Shri Arun Kumar vehemently opposed the appeal and pointed out tha .....

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e case. The period involved in the present appeal is January 2014 to September 2014. For the sake of better understanding, the definition of input service under Rule 2(I) of the CENVAT Credit Rules 2004 amended w.e.f. 01/04/2011 and 2006-2012 is reproduced under:- input service " means any service, (i) used by a provider of [output service] for providing an output service; or (ii) used by a manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products .....

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usiness exhibition, legal services, inward transportation of inputs or capital goods and outward transportation upto the place of removal [but excludes], - (A)- (B)- (C) Such as those provided in relation to outdoor catering, beauty treatment, health services, cosmetic and plastic surgery, membership of a club, health and fitness centre, life insurance, health insurance and travel benefits extended to employees on vacation such as Leave or Home Travel Concession, when such services are used prim .....

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r the provision of one or more of the specified services; or] [(B) [services provided by way of renting of a motor vehicle], in so far as they relate to a motor vehicle which is not a capital goods; or [(BA) service of general insurance business, servicing, repair and maintenance, in so far as they relate to a motor vehicle which is not a capital goods, except when used by (a)A manufacturer of a motor vehicle in respect of a motor vehicle manufactured by such person; or (b) An insurance company .....

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clause, sales promotion includes services by way of sale of dutiable goods on commission basis.] The aforesaid amended Rules 2(l) is relevant and applicable during the period of dispute in the present appeal. I now propose to take up eligibility of the disputed services with reference to the aforesaid Rule 2(1). a. Anti-termite treatment (disputed credit ₹ 30294/-) The Appellants submit that undertaking pest control activities is basic requirement to maintain any building where huge volum .....

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pellant that this pertain to training/seminars arranged for refinery employees held in various hotels and conducted by the service providers. These expenses have been grouped together with other hotel bills which covered boarding/lodging. In view of the specific inclusion of services used in relation to "coaching and training", I hold that the appellant is eligible to avail the aforesaid credit on this item. c. Interior development (Disputed credit ₹ 7,24,626/-) Appellants have s .....

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activities are in the nature of services in relation to repairs, which is specifically part of the inclusions in Rule 2(l). Hence I hold that the appellant is fully eligible to avail the said credits on the said services. f. Washing of vehicle (Disputed credit ₹ 3.928/-) I find that the said Rule 2(l) is inclusive definition along with certain specific exclusions. In any case, the impugned activity does not find place in the exclusions A, B, BA and C of Rule 2(l). Hence I hold the appella .....

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