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TMI Blog2019 (3) TMI 1365X X X X Extracts X X X X X X X X Extracts X X X X ..... hat they had availed ineligible Cenvat credit on input services and capital goods. Show-cause notice was issued proposing to disallow Cenvat credit of Rs. 7,32,880/- along with interest for the period 01.04.2012 to 13.09.2015 and also proposing to impose penalties. After due process of law, the original authority confirmed the demand along with interest and imposed penalties. In appeal, the Commissioner (Appeals) allowed the credit on Renting of Immovable Property and confirmed the balance demand. Aggrieved, the appellants are now before the Tribunal. 3. On behalf of the appellant, the learned counsel Ms. P. Kanthi Visalakshi furnished the details of disputed services as well as the credit availed under the category of capital goods as sho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he service tax paid on Renting of the Premises has been allowed by Commissioner (Appeals). However, as part of the very same agreement, appellants have paid maintenance charges for the common facility of the premises to the land owner M/s. SPB Projects & Consultancy Ltd. The common facilities include fixed charges paid for electricity, telephone lines, security provided to the premises, cleaning and upkeep of premises etc. The appellants have to pay the rent, maintenance charges for the common facility provided by the land owner. Therefore, the service tax paid on the common facility charges is eligible for credit. 3.3 The charges for Xerox paid to M/s. RICOH India Ltd., was incurred by the appellants for taking copies of documents which r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ctory premises. The department has disallowed the service tax paid on premium of such fire insurance policy, holding that Bagasse is a waste product. The said waste product is easily inflammable and, therefore, the appellants have to cover the risk of fire for which insurance has been taken. 3.8 The appellants have availed credit on colour coated roofings sheets purchased from M/s. United Steels & Structurals Ltd., which are used as roofings on the structure to cover the machines from rain, avoid corroding of machines due to moisture and to enable continuation of production without any bottleneck on account of rain. Similarly, credit was availed on GI Pipes procured from M/s. Sri Ganesh Switchgears (P) Ltd. Welding Electrodes acquired from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of M/s. Kisan Sahakari Chini Mills Ltd., Vs Commissioner of Central Excise, Meerut-II reported in 2017 (352) E.L.T.215 (Tri.-All.) was taken assistance 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in the Power Plants, Welding Electrodes and the installation/updatation of software, pollution control equipment etc., have been denied credit as these do not fall within the category of "capital goods." Now the claim of credit of such of these to be as 'inputs' is not acceptable. Therefore, the credit has been rightly disallowed. 5. Heard both sides. 6. In the tables given at para 3 above, the appellants have furnished the justification for availing the credit on various input services. The service tax paid on Repair and Maintenance Charges of air conditioners installed in the factory premises has been disallowed alleging that the air conditioners used in office are not "capital goods". The learned counsel adverted to the definition of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vices 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 AMC for maintenance of attendance machines is indeed directly related to the manufacturing activity. Such machines are used to monitor attendance of employees and also to monitor their presence within the factory. The credit availed on such charges is eligible. 6.6 The credit availed on fire insurance policy for storage of Bagasse h ..... X X X X Extracts X X X X X X X X Extracts X X X X
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