TMI Blog2021 (12) TMI 73X X X X Extracts X X X X X X X X Extracts X X X X ..... ned to remand the matter relating to appeal no. E/10987/2016 back to Adjudicating Authority to give clear finding in respect of each of this service disputed for the purpose of Cenvat credit. Appeal disposed off. - Excise Appeal No. 12070 of 2016 WITH Excise Appeal No. 10987 of 2016 - A/12560-12561/2021 - Dated:- 2-12-2021 - MR. RAMESH NAIR, MEMBER (JUDICIAL) AND MR. RAJU, MEMBER (TECHNICAL) Shri Willingdon Christian, Advocate for the Appellant Shri Ghanshyam Soni , Joint Commissioner (AR) and Shri S.N Gohil, Superintendent (AR)for the Respondent ORDER This appeal has been filed by Styrolution India Pvt Ltd against disallowance of Cenvat credit on certain services, demand of interest and imposition of penalty. 2. Learned Counsel for the appellant pointed out that they were issued SCN seeking to deny Cenvat credit on certain input services. The dispute pertains to the period April 2011 to October 2015. Learned Counsel pointed out that they have only one manufacturing unit and their marketing office is located at Mumbai. He pointed out that some of their services relating to their manufacture are availed at the marketing office located at Mumbai. Learned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iod: Sr No. Date of Audit Period 1 16.03.2009 Jan. 2008 to Sept.2008 2 15.02.2010 to 17.02.2010 Jan .2009 to Jan.2010 3 21.02.2011 to 22.02.2011 Feb. 2010 to Jan.2011 4 30.01.2012 01.02.2012 Feb 2011 to Jan 2012 5 07.03.2013 Feb. 2012 to Feb. 2013 6 September, 2014 CERA Audit 2.3 In the Appeal No E/10987/2016 the issue involved relates to various services. In the statement of Shri Minesh Gupta, Manager - Warehousing and Stores has given following details: Sr.No Credit availed on Description of the services as stated by Shri Minesh Gupta 1. HR Administration (percentage) services These are the expenses related to HR Administration Departme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e these services are in relation to our business so we availed credit for service tax. The term in relation to business activities was eligible till 01.04.2011. 13 Chairman s Office Services Chairman is common so his expenses were charged to respective companies. I am not aware of that which category of the service is covered 14 Corporate Communications services Information made available to employees to covered under this head. I am not aware of that which category of the service is covered. These services are eligible for cenvat credit because these services are in relation to our business so we availed credit for service tax. The term in relation to business activities was eligible till 01.04.2011 15 Credit Management Service It is a financial service related to credit period for making payment 16 Employee Communication (Percentage) Services It is a fix charges incurred for communication to employees. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ercentage) Services It is a finance activity. Fixed percentages were charged. He is not aware of the service under which category this service is covered In the said appeal also learned counsel has relied on various case laws to assert that credit can be availed on various services. This specific nature of each head of service listed in the table above has not been elaborated. 3. Learned AR relies on the Impugned order. 3.1 In the written submission submitted on 06.08.2021 learned AR pointed that the submission made by the learned Counsel that they have only one manufacturing unit is incorrect. He referred to the CERA Audit Report as appended by the appellant s in their submission dated 17.09.2019 which state as follows: During test check of records of the assessee, it was noticed that the asseessee had availed the credit of service tax on the services received at Mumbai from the group company which was paid (service tax) under Rule 2(i)d(iv) of Service Tax Rules. The ownership of the factory is of M/s BASF Germany and M/s Ineos, Germany by 50% each. BASF has six companies in India and Ineos has the more than one company as M/s Styrol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Chartered Accountant's services. Chartered Accountant services were used for income tax Accounting matters. Accounting and Auditing are covered under the inclusive part of definition of input services Chartered Accountant services for income tax and accounts are specifically covered 3. Insurance Surveyor's Services. The services of Insurance surveyors were utilised for survey report of raw material required for production. Services related to Procurement of inputs are covered under inclusive part of definition of Input services. Judgments : i) 2014 (313) ELT 714 (T) CCE Vs. India Cements Ltd. ii) 2015 (40) STR 774 (T) DCW Ltd. Vs. CCE Moreover, the case law cited by appellant squarely covers such services. The services are in relation to procurement of raw material therefore, admissible as credit. 4. Maintenance or Repair Services. The Appellant's Marketing department is located at Mumbai. The services are used for upkeep of the office and maintenance work related to offic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by appellant squarely covers such services.Services availed up to place of removal for storage of goods are admissible services. 8 Banking and other Financial Services Banking Service relate to financing, Foreign Exchange related to import of raw material and export of manufactured goods. Services related to financing are covered under input service definition. In this context, the Appellant rely upon the judgment in case of Semco Electric P. Ltd. Vs. CCE reported in 2012 (25) STR 73 (T) Moreover, the case law cited by appellant squarely covers such services. Services related to procurement of raw material are admissible for credit or service tax. 9 Business Auxiliary Services Sales Commission is given 10 distributors' for sale of our manufactured goods. Sales promotion is covered under the inclusive part of definition. Of input services In this context, the Appellant rely upon the following Judgments:- (i)2016-TIOL-520-CESTAT-AHM Essar Steel India Ltd. Vs. CCE (ii) 2012 (25) STR 348 (P H) CCE Vs. Ambika Oversea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... delines. These are accounting related computer services and covered under the inclusive part of definition of input services. Services are used for accounting activity which is specifically included in the definition of inputs services. Therefore, the credit is admissible. 14 Courier Services Courier Service for Marketing Department. Without dispatching post etc. through courier service the function of Marketing of manufactured goods cannot be performed. Therefore, these services are covered under the definition of input services. In this context, the Appellant rely upon the following judgments : i) 2013 (30) STR 3 (Guj.) CCE Vs. Cadila Healthcare Ltd. ii) 2016 (41) STR 990 (T) John Deere India Pvt. Ltd. Vs. CCE iii) 2016 (6) TMI 161-Cestat Sundaram Clayton Ltd. Vs. CCE Moreover, the case law cited by appellant squarely covers such services. The services are used for marketing and sale of excisable goods,. The credit is therefore, admissible. 15 Taxation Consultancy Service. Taxation services related ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... owards support services related to Manpower, Procurement of goods, Accounting, Human Resources Development, Accounts Payable, Accounts Receivables and other services related to manufacturing operations. All these services are covered under the definition of input services. The services are in relation to procurement of raw material therefore, admissible as credit. 3. Intellectual Property Services Intellectual Property Rights related to the goods by the Appellant. These services relate to our manufacturing operations and therefore covered under the definition of input services. In this context, the Appellant rely upon the judgment in case of CST Vs. Arvind Fashions Ltd. reported in 2012 (25) STR 583 (Kar.) Moreover, the case law cited by appellant squarely covers such services. The service is related to right to use designs/processes involved in manufacture. The credit is admissible. 4 Online Information and data base access or retrieval services. SAP Application Support. The Appellants are availing SAP Services for Procurem ..... X X X X Extracts X X X X X X X X Extracts X X X X
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