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LG Electronics India Pvt. Ltd. Versus Commissioner of C. Ex. & S.T. Noida

2016 (44) S.T.R. 97 (Tri. - All.) - Cenvat credit - input services - shifting and relocation expenses of the employees incurred by the assessee under the their transfer policy - Held that: - I hold that transfer and shifting expenses incurred by the appellant company pursuance of the policy of employees transfer is eligible input service prior to 1-4-2011. I also hold that in view of the clarification of C.B.E. & C. vide Circular No. 943/4/2011-CX, it has been clarified that expenses having some .....

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pellant is in appeal against order-in-appeal dated 22-3-2013 passed by Commissioner (Appeals), Customs, Central Excise and Service Tax, Noida by which the disallowance of Cenvat credit availed on input services being shifting and relocation expenses of the employees incurred by the assessee under the their transfer policy was upheld as not an eligible input service. 2. The brief facts are that the appellant is engaged in the manufacture of Air Conditioner, Colour Television, Computer, Monit .....

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vailed the Cenvat credit on such input services as it believed that such expenses are incurred in relation to the business of manufacturing and providing service and accordingly availed Cenvat credit. That the expenses are duly recorded in the books of account maintained and the credit availed of the service tax is also included in the amount of Cenvat credit in the ER-1 Returns. For the first time, in the course of audit for the period January, 2007 to December, 2007, in the month of April, 200 .....

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their part and further contended, that the transfer of the employees is made in furtherance of their business prospects and profitability of the company. The SCN was adjudicated and vide OIO dated 30-11-2012 the proposed Cenvat was disallowed ₹ 1,13,363/- along with interest and equal amount of penalty was imposed under Rule 15 read with Section 11AC of the Act. Being aggrieved the assessee preferred appeal before learned Commissioner (Appeals) who vide the impugned order was pleased to d .....

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of limitation is applicable. Being aggrieved the appellant is in appeal before this Tribunal. 2. The learned Counsel for the appellant urges that vide amendment to Rule 2(L) of CCR with effect from 1-4-2011 clause (C) includes 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 an employee have been specifically excluded. Prior to 1-4-2011 such expenditure was not specifically e .....

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ation it is the stated the credit on such service shall be available if the provision has been completed prior to 1-4-2011 . The learned counsel relied on the ruling in the case of CIT v. Bimetal Bearings - 1994 (210) ITR 945 (Mad), held that the amount paid by a company to its employees by way of settling allowance in connection with shifting of its factory to a new place is allowable expenditure. The learned counsel also relies on the ruling of the Bombay High Court in the case of CCE v. Ultra .....

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