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2016 (9) TMI 896

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..... ot excluded by Rule 2(I). With reference to credit on house Keeping Services, it is not the case that these are used for the personal use or consumption of any employee. The appellant is a manufacturer, a refinery, and if they utilise the services of a service provider to perform housekeeping functions like cleaning etc., such services are very much required for the proper upkeep of premises which in term necessary for the manufacturing activities, hence they should be accepted as an input service for the purposes of Rule 2(L) of the Rules. There is also no explicit bar in Rule 2(l) against house keeping services. With reference to credit on Documentation Service, it is clear that these relate to certification services rendered in connection with Disaster Management Plan and for Mechanical Engineering services section covering process drawings. There are very much services in relation to the refinery activities and hence do not fall foul of Rule 2(1). With reference to credit on conducting written test for non-management, this relates to services of Indian Institute of Psychometry for selection of employees for the refinery; the said input services are for the purpose of "r .....

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..... 2,17,246/- 2. Hence this appeal. 3. On behalf of the appellant, Ld. Advocate Sh. G. Prahlad, reiterated the grounds of appeal, and in particular, made the following submissions: (i) Each of the CENVAT Credit amounts disallowed in the impugned order covers service tax paid on valid input service which is incurred directly in relation to the manufacturing operation of the refinery/project related activities of the refinery. (ii) The impugned order has wrongly examined that the said services are specifically excluded from the definition of input services. (iii) The eligibility of the said input services has been upheld in a number of judgements, interalia Hindustan Coca Cola Beverages vs CCE, Nashik [2015(38) STR 129 (Tri - Mum)], Commissioner of S. T. Mumbai Vs Reliance Capital Asset Management [2016(41) STR 508 (Tri-Mum)], Hindustan Coca Cola Beverages Pvt Ltd Vs CCE ST Hyderabad [Final order A/30578/2016 dated 30.06.2016], HCL Technologies Ltd vs CCE, Noida [2015(40) STR 369 (Tri -Del)] 4. On behalf of the department, Learned AR Sh. Nagaraj Naik opposed the appeal and submitted that the adjudicating authority denial of cred .....

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..... na Industries Ltd., Vs CCE, Aurangabad reported in 2010 (254) ELT 301 (Tri.Mum) where CENVAT Credit availed on House Keeping services was ordered to be eligible for CENVAT Credit. 20 48 Commissioning service Commissioning Service: Amount involved ₹ 1,23,600/-. Covered by only one invoice issued by M/s Projects Development India Ltd. The service for the 2 units Flue Gas De-sulpharisation Unit (FGD) Purge Treatment Unit (PTU). FGD is set up to reduce the sulphur emission. FGD PTU Process units are set up in the refinery connected with refining activities. Accordingly, the service tax paid to Service Provider against the valid tax invoice is eligible for CENVAT Credit. 20 48 Documentation service ₹ 22,732/- No conclusive evidence produce that the said services are utilized in or relation to manufacture of excisable goods. CENVAT Credit availed under this service involved 3 invoices, covers certification services rendered by M/s International Certification Services in connection with the Disaster Management Plan which is an essential .....

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..... ed in sub-clauses (d), (o), (zo) and (zzzzj) of clause (105) of Section 105 of the Finance Act, in so far as they relate to a motor vehicle except when used for the provision of taxable services for which the credit on motor vehicle is available as capital goods; or (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 primarily for personal use or consumption of any employee; 7. I find that the disputed input services are not barred or excluded by Rule 2(l) ibid. The catering service availed by the appellant is not in the nature of outdoor catering service used primarily for personal use or consumption of any employee, but related to food served in training activities like seminars, workshops etc., hence their input services will not fall in the audit of the Exclusion clause (C) of Rule 2(I). 8. With reference to credit on commissioning service appellant has clarified that this relates to project moni .....

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