TMI Blog2019 (3) TMI 1365X X X X Extracts X X X X X X X X Extracts X X X X ..... aking Xerox copies - Held that:- The charges paid by the appellants for taking Xerox copies is explained to have incurred by them for taking copies of documents in the Head Office of the appellants. Such necessity for taking photocopy of documents is related to the activity of manufacture and appellants are eligible for credit - credit allowed. Appellants have availed services of M/s. Esvin Advanced Technologies Ltd., for improving the quality of molasses by desalting - Held that:- The appellants have availed services of M/s. Esvin Advanced Technologies Ltd., for improving the quality of molasses by desalting. These services are intended to improve the quality of their finished product - the credit on such services is eligible - credit allowed. Membership Fees has been paid by the appellants to take membership specifically in M/s. Indian Sugar Mills Association and M/s. South Indian Sugar Mills Association - Held that:- Such association helps its members to understand the trends in the market and allows a common platform to raise their grievances before the concerned authorities. The credit availed on such services is eligible - credit allowed. AMC for maintenance of atten ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... capital goods as shown in the table below:- List of disputed services with justification for which service tax credit taken Sl.No. Nature of Service Service Tax Credit taken Amount (in Rs.) (1) (2) (3) 01 Office Air Conditioner Repair Charges 37,822 02 Common facility charges paid 1,37,676 03 Payment made to RICOH India Ltd., 5,329 04 Payment made to Esvin Advanced Technologies Ltd. 16,480 05 Membership fees paid to India Sugar Mills Association and South India Sugar Mills Association 79,474 06 Payment made to Pace Solutions 1,298 07 Insurance Premium paid to The New India Assurance Co. ltd., 6,924 Total 4,77994 List ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g of molasses. These are directly related to the manufacture of final product and, therefore, eligible for credit. 3.5 The appellants had paid Membership Fees for taking membership in M/s. Indian Sugar Mills Association and M/s. South Indian Sugar Mills Association. The fees are paid to the association based on the volumes of sugar produced. In the process, such associations help the appellants in getting the day-to-day-updation of sugar industry related information and issues in the industry and also to adopt improvements in the manufacturing process. Therefore, the service tax paid to such Membership Fees are directly related to the manufacturing activity and ought to have been allowed. 3.6. The credit availed on service tax paid on AMC Charges to M/s. Pace Solutions to maintain the attendance machines used in the factory has been disallowed by the department. The presence of the employees is monitored by such attendance machines to ensure uninterrupted production and, therefore, the disallowance of credit is incorrect. 3.7 The appellants had taken Fire Insurance Policy with M/s. New India Assurance Co. Ltd., to cover risk of fire in storage of Bagasse within the factory ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... istance by the learned counsel to argue that the credit on Sheets and Welding Electrodes were held to be eligible under the category of inputs even though the appellants had availed credit under the category of capital goods . 3.9 The decision of the Tribunal in the case of M/s. LG Polymers India Pvt. Ltd., Vs Commissioner of Central Excise, Customs Service Tax, Visakhapatnam reported in 2017 (5) G.S.T.L. 89 (Tri.-Hyd.) and M/s. Sai Life Sciences Ltd., Vs Commissioner of Central Excise, Customs Service Tax, Hyderabad-IV reported in 2017 (51) S.T.R. 55 (Tri.-Hyd.) were relied upon by learned counsel to support her arguments with regard to the credit availed on various input services. 4. The learned Authorised Representative for the Revenue Shri L. Nanda Kumar supported the findings in the impugned order. With regard to the credit availed on AMC for air conditioners, he submitted that the air conditioners were used in the office of the factory of the appellants. Such goods used in the office do not qualify as capital goods and, therefore, the credit availed for repair and maintenance of such goods has been rightly disallowed. The credit availed on common facili ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ave to pay maintenance charges, for the common facility also. Therefore, the disallowance of credit on such maintenance charges paid for common facility is incorrect. The same is held to be eligible. 6.2 The charges paid by the appellants for taking Xerox copies is explained to have incurred by them for taking copies of documents in the Head Office of the appellants. Such necessity for taking photocopy of documents is related to the activity of manufacture and appellants are eligible for credit. 6.3 The appellants have availed services of M/s. Esvin Advanced Technologies Ltd., for improving the quality of molasses by desalting. These services are intended to improve the quality of their finished product and, therefore, I am of the view that the credit on such services is eligible. 6.4 The Membership Fees has been paid by the appellants to take membership specifically in M/s. Indian Sugar Mills Association and M/s. South Indian Sugar Mills Association. Such association helps its members to understand the trends in the market and allows a common platform to raise their grievances before the concerned authorities. The credit availed on such services is eligible. 6.5 The AM ..... X X X X Extracts X X X X X X X X Extracts X X X X
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