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2017 (7) TMI 396

s 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 appellants can be termed as an arrangement for passing on of the costs - even in the invoices dated 28.12.2013 of BIL submitted by the Ld. Advocate during the hearing, while under the head description of service it has been mentioned as BSS however the said invoices also clearly indicates MPLS cost 2013-14-III Qtr. This aspect also shows that the whole exercise was only for the benefit of BIL and that billing was only an exercise to shift par .....

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. 2.2 Appellant M/s. Wichitra Auto Limited., are job workers to BIL engaged in the manufacture of Hose End Assembly. 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 MPLS and IT support charges and raised invoices to the appellant towards reimbursement of the MPLS charges along with service tax components indicated therein for the period from December 2010 to December 2014. 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. 2.3 Appellant M/s. Freins Metal Ltd., are job workers to BIL engaged in the manufacture of Parts and Accessor .....

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r. He submits a sample invoice dated 28.12.2013 of BIL along with connected bills from BSNL and Reliance to show that only the proportionate quantum of service utilized by the appellants was charged by BIL to the latter. Ld. Counsel contends that this activity on the part of BIL has to be considered 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 .....

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the stand of the department appears vindicated for 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 at page-34 the appellants therein have conceded that BIL are retrieving data relating to them from the server and are further processing the same for their end use (emphasis added). Similar admission h .....

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