TMI Blog2018 (1) TMI 418X X X X Extracts X X X X X X X X Extracts X X X X ..... reof. The demand in respect of fireproofing work and waterproofing work is therefore, set aside - dismantling of Sulphur Pelletizer Shed is also does not amount to construction or execution of works contract of the building or civil structure or part thereof and thus would not be hit by the exclusion clause (A) of Rule 2 (l) of Cenvat Credit Rules, 2004 - demand set aside. CENVAT credit - Help Desk Assistant used for repairs carried out at the colony adjacent to refinery - Held that: - The definition post 01/03/2011 specifically excludes services used primarily for personal purposes. Therefore, Help desk assistant at estate has no relation to the activity of manufacture in the factory premises and thus credit of the same cannot be permitted, the same is denied. CENVAT credit - training given to employees about investment of salaries and pension plans - Held that: - the training given to employees in respect of investment of salaries and pension plans is nothing to do with the manufacturing process and is mainly for personal use of consumption of employees. It is thus not admissible as input service. Appeal allowed in part. - Appeal No. E/86851/17 - A/91718/2017 - Dated:- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lained in table (Sr 1 to 8) at - Page 75-76)) (i) Would hit by the exclusion clause (A) of the definition of input service under Rule 2(l) of CCR, 2004. (i) Section 38 of the Factories Act requires a Factory to take all practicable measures to prevent outbreak of fire and its spread both internally and externally; (ii) Oil Refining which is Hazardous process ; (iii) directly related to manufacturing activity which covered is under the main part of definition of input service ; (iv) Judgement - WNS Global Services Ltd. [reported in 2016 (44) STR 454 (T) -Para-8] 2.2 Water Proofing: Utilised for Computer Science Services Building, Minas switch house and Main Receiving station, CCU building etc., within Refinery (Utilisation along with Invoice details explained in table (Sr 9 to 16) at - Page 76-77)) (i) Would hit by the exclusion clause (A) of the definition of input service under Rule 2(l) of CCR, 2004. (i) Waterproofing in various areas of plant ensure safety in Operations; (ii) Oil Refining which is Hazardous process ; and leakages may ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om the definition of input service as per clause (l)(C) of Rule 2 of CCR, 2004 (i) Training Fees paid to Experts providing guidance / suggestions to the employees about investment of salaries and pension plans; (ii) Training Specifically covered under the inclusive clause of definition; (iii) Exclusion has to be interpretated strictly-excludes, services 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, which expressions does not cover advices of experts on the investment plans and pension schemes. Training not mentioned in exclusion: Judgement- Willis Processing - [reported in 2013 (32) STR 288 (AP) - Para-5] upheld by Bombay High Court - 2017-TIOL-2072-HC-MUM-ST 2.1 He relied on the following decisions: a) Binani Cement Ltd. 2015 (37) STR 1071 (Tri) b) WNC Global Services 2016 (44) STR 454 (Tri) c) JSW Steel (Salav) Ltd. 2016 (46) STR 863 (Tri) d) Jindal Pipes Ltd. 2013 (30) STR 686 (Tri) e) Hindustan Zinc Ltd. 2014 (33) STR 71 (Tri) f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntre has to be treated as in or in relation to manufacture of final product and would be eligible for Cenvat credit as input service. 4.1 It is seen that the exclusion 1 (c) to definition of input service appearing in sub-rule 1 (l) of Rule 2 of Cenvat Credit Rules applies to the entire main clauses of the definition, that is to say even if inputs services are used for providing an output service or used by a manufacturer directly in relation to the manufacture of final products, still if the said services falls in exclusion clause (a), (b) and (c) then the credit would not be admissible. Thus, the assertion of the appellant that because they installing medical centre in the factory premises they cannot operate the factory while if the medical centre is used primarily for personal use then the credit would not be admissible. There are no findings from the lower authorities regarding the location of the medical centre and primary use of the health centre. If the said medical centre is not located in the factory or if the said medical centre is primarily used by the families of the employees and not by the personal engaged in the factory then the credit would not be admissible. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of input services prior to 01/03/2011 and thus the facts are distinguishable. The definition post 01/03/2011 specifically excludes services used primarily for personal purposes. Therefore, Help desk assistant at estate has no relation to the activity of manufacture in the factory premises and thus credit of the same cannot be permitted, the same is denied. 7. The next activity on which credit has been claimed by the appellants pertains to training given to employees about investment of salaries and pension plans. The appellant have sought to rely on the decision of Wills Processing 2015 (38) STR 169 (Tri) upheld by Bombay High Court as reported in 2017-TIOL-2072-HC-MUM-ST. It is seen that the said decision was passed in respect of definition of input service as is existed prior to 01/03/2011 and thus the same is distinguishable. I find that the training given to employees in respect of investment of salaries and pension plans is nothing to do with the manufacturing process and is mainly for personal use of consumption of employees. It is thus not admissible as input service. The exclusion clause 1 (C) with the words such as which employee that the list of service is not exclusiv ..... X X X X Extracts X X X X X X X X Extracts X X X X
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