9911796707
TMI Blog2023 (10) TMI 53X X X X Extracts X X X X X X X X Extracts X X X X ..... credit was denied are given herein below: Sl. No. Alleged Inadmissible CENVAT credit (nomenclature as per the said OIO) Amount (Rs.) 1. Constructions Services 5,81,135/- 2. Outdoor Catering 6,50,117/- 3. Travel Agent 47,825/- 4. AMC on Photocopy 50,081/- 5. Sify Communication (Broad Band Service) 12,085/- Total 13,41,243/- 2. 2. Briefly the facts of the present case are that the appellant, M/s Keihin Fie Private Limited, an Indo-Japanese venture, is engaged in the business of manufacture and sale of carburetors and other goods, classifiable under Chapters 84 and 87 of the Central Excise Tariff Act, 1986 and is having their factory at Plot No.81-83 and 94-96, Sector 6, HSIDC, Growth Centre, Bawal, District Rewari. On the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CCE, Delhi- III [reported at (2023) 7 Centax 197 (Tri. Chan)]. 4.1. As regards Outdoor Catering Service, learned Counsel for the appellant submitted that in Para 39 of the Order-in-Original, the Adjudicating Authority has alleged that the recovery made by the appellant in relation to canteen activities and that such expenses do not form part of the cost of production and thus inadmissible. Learned Counsel, in reply to these objections, submitted that as per the provisions of the Factories Act, 1948, the appellant was under an obligation to provide canteen facilities to its employees and the allegation about recovery from employees was never alleged in any of the show-cause notices and the said Order-in-Original has travelled beyond such a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... but the Adjudicating Authority has wrongly presumed that photocopy can be for personal use or business use without their being any supporting or cogent evidence. For this submission, he relied upon the decision in the case of Parson Machinery (I) Private Limited Vs CCE, Aurangabad [reported at 2009 (16) STR 20 (Tri. Mumbai)]. 4.4. As regards Broadband Services, learned Counsel submitted that the appellant has availed CENVAT credit in relation to certain broadband services availed by the appellant. He also submitted that in today's global era, internet/ broadband services are required for any business activity to function. He further submitted that in Para 42 of the Order-in-Original, the Adjudicating Authority held that internet services ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... igh Court of Karnataka in the case of Toyota Kirloskar Motor Private Limited (supra) which was affirmed by the Hon'ble Supreme Court also. Therefore, the CENVAT credit has rightly been availed with regard to the outdoor catering. Further, with regards to Travel Agency Service, I find that the service tax paid to travel agents for making arrangements of the employees to visit customers, suppliers and other authorities is for the purpose of business only and cannot be termed as 'for personal use of the employees'. This is also covered in the case of Ramco Cements Ltd. (supra). Further, as regards CENVAT on AMC Photocopy Machines and Broadband Services, I find that these services fall very much in the definition of "Input Service" as both the ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
