TMI Blog2023 (6) TMI 296X X X X Extracts X X X X X X X X Extracts X X X X ..... Club Service, General Insurance Service, FICCI Quality Awards, coating of floor, AC Service Charges can be called as the input services. From the discussion it is clear that anything which is used in or in relation to the manufacture of final product has to be qualified as input service. All the above services since were availed with respect to the place of manufacture of final product and with respect to the employees in general, of the manufacturer, the services gets covered under the wide notation directly or indirectly used in or in relation to the manufacture - The service of general insurance also do not relate to motor vehicle. Hence, are not specifically covered under the exclusion. The services of Membership of Club, Health Services also are not for the employees on vocation. Thus, are not primarily for personal use or consumption of any employee. As such, the plea of exclusion of the services from the definition of input is held to be incorrect. Extended period of limitation - HELD THAT:- Though the Adjudicating Authority has reflected the opinion that in the era of self assessment, it was the duty of the appellant to correctly avail the Cenvat Credit and to comp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t amounting to Rs.3,31,954/- (Rs.2,75,034/- on ineligible input services such as Outdoor Catering service, Membership of Club, General Insurance services, Maintenance of ETP, input service credit related to other units etc. and Rs.56,920/- on the basis of ISD invoice related to the period from September 2013 to February, 2014 i.e. prior to the Credit Rules, 2004 (hereinafter referred to as 'the Rules also). 2. Show cause Notice was issued to the appellant proposing therein recovery of wrongly availed credit amounting to Rs.3,31,954/- under Rule 14 of the Rules read with proviso to Section 11 A (4) of Central Excise Act, 1944 (hereinafter referred to as the Act' also) alongwith interest under Rule 14 of the Rules read with Section 11 AA of the Act and imposition of penalty under Rule 15 of the Rules read with Section 11 AC of the Act. The Adjudicating Authority vide Order-in-Original No.14/Dem/2019-20-CE dated 10.10.2019 after considering the submission, vide the impugned order confirmed the demand of Cenvat Credit alongwith interest and penalty equal to the amount of Cenvat credit. Appeal is partly allowed vide Order-in-Appeal No. 2 (SM)/CE/JPR/2021 dated 15/01/2021 giv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on, market research, storage upto the place of removal, procurement of inputs, accounting, auditing, financing, recruitment and quality control, coaching and training, computer networking, credit rating, share registry, security, business exhibition, legal services, inward transportation of inputs or capital goods and outward transportation upto the place of removal; [but excludes], - (A) service portion in the execution of a works contract and construction services including service listed under clause (b) of section 66E of the Finance Act (hereinafter referred as specified services) in so far as they are used for (a) construction or execution of works contract of a building or a civil structure or a part thereof; or (b) laying of foundation or making of structures for support of capital goods, except for the provision of one or more of the specified services; or] [(B) [services provided by way of renting of a motor vehicle], in so far as they relate to a motor vehicle which is not a capital goods; or [(BA) service of general insurance business, servicing, repair and maintenance, in so far as they relate to a motor vehicle which is not a capital goo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion to the manufacture of final product . It is the functional utility of the said item which would constitute the relevant consideration. Unless and until the said input is used in or in relation to the manufacture of final product within the factory of production, the said item would not become an eligible input. The said expression used in or in relation to the manufacture have many shades and would cover various situations based on the purpose for which the input is used. However, the specified input would become eligible for credit only when used in or in relation to the manufacture of final product. Hydrogen gas used in the manufacture of sodium cyanide is an eligible input, since it has a significant role to play in the manufacturing process and since the final product cannot emerge without the use of gas. Similarly, Heat Transfer Oil used as a heating medium in the manufacture of LAB is an eligible input since it has a persuasive role in the manufacturing process and without its use it is impossible to manufacture the final product. Therefore, none of the categories in the inclusive part of the definition would constitute relevant consideration per se. They become releva ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l in the case of Rajratan Global Wire Ltd. vs. Commissioner, CGST, Ujjain (MP) reported in 2021-TIOL-315-CESTAT-Del. None of these services appears to be in the nature of works contract services, question of them falling under the exclusion clause of input services does not at all arise. The service of general insurance also do not relate to motor vehicle. Hence, are not specifically covered under the exclusion. The services of Membership of Club, Health Services also are not for the employees on vocation. Thus, are not primarily for personal use or consumption of any employee. As such, the plea of exclusion of the services from the definition of input is held to be incorrect. 9. Coming to the issue of invocation of extended period, though the Adjudicating Authority has reflected the opinion that in the era of self assessment, it was the duty of the appellant to correctly avail the Cenvat Credit and to comply with the provisions of law, Commissioner (Appeals) has held that since the appellant has failed in that duty the extended period has rightly been invoked. But I am of the opinion that extended period can be invoked if and only if there is an apparent and willful suppression ..... X X X X Extracts X X X X X X X X Extracts X X X X
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