TMI Blog2021 (6) TMI 977X X X X Extracts X X X X X X X X Extracts X X X X ..... input credit of ₹ 25,14,532/- is allowable credit under Rule 2(l) read with Rule 3 read with Rule 9 of CCR, 2004 - Appeal allowed - decided in favor of appellant. - Excise Appeal No.50593 of 2019 (SM) - FINAL ORDER NO.51607/2021 - Dated:- 21-6-2021 - SHRI ANIL CHOUDHARY, MEMBER (JUDICIAL) Shri Kamaljeet Singh, Advocate for the appellant. Shri P. Juneja, Authorised Representative for the respondent. ORDER The appellant is engaged in the manufacture since 2009 of sponge iron, silico manganese, etc., which is dutiable and are registered with the Department. The Auditors of Accountant General (Audit) vide Audit Report No.IR2016-21(C.Ex) observed that the appellant during the year 2015-2016 have availed cenvat credi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dit with further proposal to impose penalties under Rule 15 of CCR. 3. The show cause notice was adjudicated on contest and the proposed disallowance of cenvat credit was dropped by the Asstt. Commissioner, observing that in spite of dropping of the words setting-up from Rule 2(l) relying on the subsequent notification no.28/2012-CE(NT), wherein inclusive clause has been substituted wherein the service of works contract and construction services includes services listed under Clause (b) of Section 66 E of the Finance Act, used for construction or execution of works contract of a building or a civil structure or a part thereof; or laying of foundation or making of structure for support of capital goods, has been kept in exclusion clau ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ; , and also includes various services used in relation to the business whether prior to manufacture or after manufacture. Thus, Rule 2 (l) extends to all services having direct or indirect nexus, or integrally connected with the business of manufacturing of the final product. It was further observed that the said Pelletizing Plant set up in the same factory premises of the appellant is expansion, or the modernisation of the existing plant, which is essential part of the existing business. Further, the activities of expansion or modernisation of the plant had resulted in more efficient manufacture of the products/output, which is cleared on payment of duty. Thus, the conditions for allowance as input service under Rule 2 (l) are fulfilled ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rvices, including equipments leasing and higher purchase; (ii) ........................ (iii) Merchant Banking Services; (iv) ........................ (v) ....................... (vi) ...................... (vii)....................... (viii)........................ (ix) other financial services viz. lending, issue of pay order, etc. 7. Further, taxable service in respect of the banking and financial services have been defined under Rule 65(105)(zm) as -- ---means any [service provided or to be provided], [to any person], by a banking company, etc. in relation to the banking and other financial services. Thus, service in dispute qualify under the head Banking Financial Services Further, urged that input se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... efinition of input service‟, the same is allowable. Further, the activity of the setting up of the pelletizing plant amounts to modernisation‟, which still exists in the inclusive part of the definition in Rule 2 (l) after 1.4.2011 also. Ld. Commissioner (Appeals) have failed to consider the aspect of modernisation and/or expansion, and have mis-directed himself in passing the impugned order. Further, it is not disputed that the Pelletizing plant has been added to the existing manufacturing facility since 2009, for the purpose of more efficiency and better quality of output. Accordingly, He prays for allowing their appeal. 10. Reliance is placed on the ruling of this Tribunal in the case of Jubilant Biosys Ltd. 2016 (42) ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
