TMI Blog2019 (11) TMI 1471X X X X Extracts X X X X X X X X Extracts X X X X ..... definition of input service (effective up to 31.03.2011), the scope and ambit of input service was very broad and comprehensive inasmuch as the phrase activities relating to business was specifically finding place in the inclusive part of such definition. The effect of such expression is that any services availed by a service provider for accomplishing the purpose of its business, should be considered as input service. The scope of input service was also widespread under the amended definition of input service (w.e.f. 01.04.2011) inasmuch as the expression any service used by a provider of output service for providing an output service was incorporated in such definition clause. Further, the inclusive part of definition has also widened the scope and ambit, meaning thereby that all most all the services used by a service provider were recognized as input service for the purpose of availment of Cenvat benefit. However, certain excluded category of services were provided in the definition clause, which would not be considered as input service in the case of a service provider. For ascertaining eligibility of cenvat benefit on the disputed services,proper examination of the con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ₹ 31,677/- After ₹ 76,554/- Thin line of differentiation for the purpose i.e. whether for personal or for the business connected to manufacture. (i) For booking of air tickets for various executives, officers and directors for attending various meetings and conferences related to procurement of order, operation and development purpose. (ii) Covered specifically under Sales Promotion , credit is admissible under Rule 2(l) of CCR, 2004. (iii) Denial of credit merely based on assumption/ suspicion is not sustainable. (iv) Judgements: (a) ITC Ltd. 2017-TIOL- 1894-CESTAT-BANG (b) SKF India - 2017-TIOL- 3313-CESTAT-BANG Jaypee Rewa Cement 2017-TIOL-1719-CESTATDEL 2. Car Insurance Services (₹ 5,281/-) After ₹ 5,281/- Thin line of differentiation for the purpose i.e. whether for personal or for the business connected to manufacture. (i) Insured own Car s, which are registered in the name of M/s. Technocraft, which are used for travelling by various executives, officers and directors for attending various meetings an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not been established. (i) Delivery of samples of their products like drum closures (small) for approval to their customers. (ii) Covered under the expression in or in relation to manufacture in the definition of input service under Rule 2(l), CCR. (iii) Judgements: (a) Piramal Glass 2017 (49)STR 167 (T) (b) HEG Ltd. - 2010 (18) S.T.R. 446 (Tri. - Del.) 6. Dismantling of Old Crane Power Press Services (₹ 19,663/-) Prior ₹ 19,663/- Not able to establish nexus, with their manufacturing ctivity, as held by Hon ble Bombay High Court in the case of Manikgarh Cement-2010 (20) STR 456 (Bom). (i) old/obsolete cranes and power press, replaced by in form of renovation by installing new cranes and power press. (ii) Covered under the expression renovation, repairs renovation or repairs of a factory in the definition of input service under Rule 2(l), CCR. (iii) Judgements: (a) Carrier Airconditioning Refrigeration 2016 (41) STR 824 (T) (b) Paradise Plastics Enterprises Ltd. 2015 (39) STR 889 (T) Bajaj Hindustan 2014 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rigeration 2016 (41) STR 824 (T) (b) Paradise Plastics Enterprises Ltd. 2015 (39) STR 889 (T) Bajaj Hindustan 2014 (33) STR 305 (T) 10. Hyundi Car Insurance Services (₹ 1,290/-) Prior ₹ 1,290/- Thin line of differentiation for the purpose i.e. whether for personal or for the business connected to manufacture. (i) Insured own Car s, which are registered in the name of M/s. Technocraft, which are used for travelling by various executives, officers and directors for attending various meetings and conferences related to procurement of order etc. (ii) Engage Insurance company to insure these Cars, as it is mandatorily required under Motor Vehicles Act . (iii) Covered under in or in relation , credit is admissible under Rule 2(l) of CCR, 2004. (iv) Judgements: (a) Jai Chemicals 2015 (40) STR 345 (T) (b) HEG Ltd. 2010 (20) STR 312(T) 11. Insurance of Vehicle Services (₹ 4,931/-) Prior ₹ 4,931/- Thin line of differentiation for the purpose i.e. whether for personal or for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onsultancy Services (₹ 2,34,072/-) Prior ₹ 11,052/- After ₹ 2,23,020/- Not established the nexus and use of the same for the business of manufacture. (i)Management consultancy service from various service providers in the field of business management and project management for effective and efficient management of port operations and developments. (ii) scope of services included within business management the services of consultancy services to define the desired process model for capital projects, review existing processes, establish gaps in coverage and content, design to be business processes, define functional requirements for IT enablement of designed business processes, program-manage implementation of designed business processes and provide subject matter expertise in program managing, IT implementation for capital project management. (iii) Covered under in or in relation , credit is admissible under Rule 2(l) of CCR, 2004. (iv) Judgements: (a) Cadila Healthcare 2013 (30) STR 3 (Guj) (b) Sai Life Sciences 2017 (51) STR 55 (T) (c) Bioplus Life Sciences 2017 (49) STR 505 (T) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ngaging the services of testing analysis agencies. (ii) Covered under in or in relation to manufacture, credit is admissible under Rule 2(l) of CCR, 2004. (iii) Judgements: (a) Cadila Healthcare 2013 (30) STR 3 (Guj) 19. Xerox Copier Services (₹ 25,016/-) Prior ₹ 12,709/- After ₹ 12,307/- (i) For taking photocopy of production documents, purchase documents, indents, drawings, sales orders etc.. (ii) Installed in the factory is also used for taking photocopies of drawings and sketches which is provided to the manufacturing staff. (iii) Covered under in or in relation to manufacture, credit is admissible under Rule 2(l) of CCR, 2004. (iv) Judgements: (a) Cadila Healthcare 2013 (30) STR 3 (Guj) 20. Services provided by bank (₹ 11,449/-) Prior ₹ 11,449/- Details of Service tax paid, can be verified by the jurisdictional Central Excise officers, is not acceptable. (i) Paid for various bank charges and finance charges related to day to day operations like op ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e (effective up to 31.03.2011), the scope and ambit of input service was very broad and comprehensive inasmuch as the phrase activities relating to business was specifically finding place in the inclusive part of such definition. The effect of such expression is that any services availed by a service provider for accomplishing the purpose of its business, should be considered as input service. The scope of input service was also widespread under the amended definition of input service (w.e.f. 01.04.2011) inasmuch as the expression any service used by a provider of output service for providing an output service was incorporated in such definition clause. Further, the inclusive part of definition has also widened the scope and ambit, meaning thereby that all most all the services used by a service provider were recognized as input service for the purpose of availment of Cenvat benefit. However, certain excluded category of services were provided in the definition clause, which would not be considered as input service in the case of a service provider. Thus, for ascertaining eligibility of cenvat benefit on the disputed services, I am of the view that proper examination of the con ..... X X X X Extracts X X X X X X X X Extracts X X X X
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