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M/s. Aztec Auto Ltd., M/s. Wichitra Auto Ltd., Freins Metal Ltd. Versus CCE, Madurai

2017 (7) TMI 396 - CESTAT CHENNAI

CENVAT credit - duty paying invoices - job-work - department took the view that no service was rendered by BIL, hence, availment of credit of service tax component reflected in those invoices was incorrect - Held that: - the activity performed by BIL for monitoring of production activities of the appellants cannot by any stretch of imagination be considered as an input service in or in relation to the manufacture of final products of the appellants. At the most, the billing made by BIL to the ap .....

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- decided against appellant. - E/42031/2016, E/42032/2016, E/42034/2016, E/42040/2016 & E/42041/2016 - Final Order Nos. 41184-41188/2017 - Dated:- 29-6-2017 - Shri Madhu Mohan Damodhar, Member ( Technical ) Shri M. Kannan, Advocate, for the appellants Shri A. Cletus, ADC (AR) Shri B. Balamurugan, AC (AR) for the respondent ORDER All these appeals since involving identical dispute are taken up together for common disposal. 2.1 Appellants M/s. Aztec Auto Ltd. are job workers to M/s. Brakes India L .....

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ses of the former. It had further appeared that BIL had utilized MPLS service for communicating and retrieving data from their sub-contractor appellants. BIL raised invoices to the appellants towards reimbursement of the above MPLS charges along with service tax components indicated therein. The department took the view that no service was rendered by BIL, hence, availment of credit of service tax component reflected in those invoices was incorrect. 2.2 Appellant M/s. Wichitra Auto Limited., are .....

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nce, availment of credit of service tax component reflected in those invoices was incorrect. 2.3 Appellant M/s. Freins Metal Ltd., are job workers to BIL engaged in the manufacture of Parts and Accessories of Motor vehicle viz., Carbon Brushes. During the course of verification of records by the Internal Audit Wing of the department, it appeared that BIL had availed input service tax credit on Consulting Engineer Service and raised invoices to the appellant towards reimbursement of the MPLS char .....

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of service tax credit allegedly availed wrongly, along with interest liability thereon and imposition of penalty under various provisions of Finance Act, 1994 and Rules thereto. These proposals were confirmed in adjudication by the original authorities concerned and on appeal, the Commissioners (Appeals) vide impugned orders upheld the orders of the adjudicating authority. Hence the appellants are before this forum. 3.1 Today when the matter came up for hearing, in respect of M/s. Aztec Auto an .....

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ed as Business Support Service (BSS) and that in fact the service tax that had been discharged by BIL on the invoices raised by them had been done so under the head of BSS. He submits that there has been no objection raised by the department on the discharge of service tax by BIL, hence the availment thereof by the appellants cannot be assailed. Ld. Counsel submits that the same arguments would be applicable in respect of M/s. Freins Metal Ltd. 3.2 Ld. Advocate also relies upon the following cas .....

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IL to the appellants, in fact, the server is utilized to monitor the production and other related activities of the appellants by BIL (b) The MPLS, SAP usage by the appellants through the server of BIL cannot be considered as beneficial service utilized in or in relation to the manufacturing activities or in furtherance of their business. (c) MPLS, SAP services are not utilized by the appellants but only by BIL and only a proportionate cost which is paid by BIL to the actual service providers is .....

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or example in the reply filed by M/s. Wichitra Auto Ltd., (A.No. E/42034/2016) dated 06/05/2015, at page-43 of the appeal paper book at para-6 of the reply, the appellants therein has themselves considered it is on record that BIL are retrieving data relating to us from the server and are further processing the same for their end use . So also in the reply to the show cause notice filed by M/s. Aztec Auto Ltd., (A.No. E/42031 & 42032/2016) in para-5 of their reply to show cause notice, found .....

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