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M/s Hindustan Petroleum Corporation Ltd. Versus CCE, Visakhapatnam-I

2016 (9) TMI 896 - CESTAT HYDERABAD

Cenvat credit - Service Tax paid on various services viz., Catering service, Commissioning services, House Keeping, Documentation Service and Conducting written test for Non-Mgt. - utilization of Cenvat credit for discharging the excise duty liability on finished petroleum products cleared from the refinery - period involved is April 2013 to December 2013 - Held that:- it is found that disputed input services are not barred or excluded by Rule 2(l) ibid. The catering service availed by the appel .....

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tilised in relation to refining activities and hence not 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 .....

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e 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 "recruitment" which is specifically included in the sample list of services in Rule 2(l). As trend, hereinatore, the impugned services are very much input services for the purposes of Rule 2(I). This being so, the denial of input credit by the .....

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e a Central Public Sector undertaking under the Ministry of Petroleum and Natural Gas, Govt of India. They are engaged in refining and clearing diverse petroleum products on payment of appropriate duty of excise. During the period April 2013 to December 2013, Appellants had paid Service Tax on various services and had availed CENVAT Credit of Service Tax paid on the same and utilized the same while discharging the excise duty liability on the finished petroleum products cleared from their refine .....

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he CENVAT Credit Rules, 2004. On adjudication, the adjudicating authority dropped SCN proposals for recovery of credit to the extent of ₹ 2,00,65,097/-, however confirmed a demand of ₹ 2,17,246/- on the following input services: (i) Catering service Rs. 23,889 (ii) Commissioning services 1,23,660 (iii) House Keeping 41,463 (iv) Documentation Service 22,732 (v) Conducting written test for Non-Mgt. 5,562 2,17,246/- 2. Hence this appeal. 3. On behalf of the appellant, Ld. Advocate Sh. G .....

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f 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 ap .....

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table submitted in the grounds of appeal: Page of O-I-O Para of O-I-O Grounds given in the impugned order for disallowing the CENVAT Credit Appellants contentions 20 48 It is held that from the invoice submitted by the Appellants clearly evidences that the expenditure incurred was towards providing food in a hotel / restaurant. Further no relation is attributable to the expenditure incurred towards utilization of the said service in or in relation to the manufacture of excisable goods in the re .....

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c., connected with the manufacturing activity of the Assessee were involved like seminars, workshops etc. House keeping services 20 7 48 18 Assessee has not provided any conclusive evidence towards utilization of services and availing CENVAT Credit in respect of them. Services have been availed with reference to the Assessees old project Office, warehouse etc., Which have no nexus with the manufacturing activity of petroleum products. Amount involved: ₹ 41,463/- consisting of 13 invoices. .....

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pment 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 m .....

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ery. 20 48 Conducting written test for no-management ₹ 5,562/- No conclusive evidence produced that the said services are utilized in or relation to manufacture of excisable goods. CENVAT Credit availed under this service cover on invoice issued by the Indian Institute of Psychometry whose services were availed at the time of conducting Written test for selection of non-management employees to fill up existing vacancies. 6. The period covered in the above appeal for the disputed input Cred .....

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ervices used in relation to modernization, renovation or repairs of a factory, premises of provider of output service or an office relating to such factory or premises, advertisement or sales promotion, market research, storage up to the place of removal, procurement of inputs, accounting, auditing, financing, recruitment and quality control, coaching and training, computer networking, credit rating, share registry, security, business exhibition, legal services, inward transportation of inputs o .....

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specified services; or (B) specified 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 in .....

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s, 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 monitoring consultancy charges for FGD and PTU units; hence I hold that this service has indeed been utilised in relation to refining activities and hence not excluded by Rule 2 (I). 9. With reference to credit on house Keeping Services, it is not the case that there are used fo .....

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