9911796707
TMI Blog2024 (6) TMI 1263X X X X Extracts X X X X X X X X Extracts X X X X ..... ing machinery and spares falling under Chapter 84 of CETA, 1985. On scrutiny of their records, it was noticed that they had taken credit of service tax paid on various inadmissible services during the period from April 2010 to March 2012. As the said services were not related to the manufacture of final products, Show Cause Notice dated 23.8.2012 was issued proposing to disallow and recover the credit of Rs.4,03,207/- under sec. 11A of the Central Excise Act, 1944 along with interest and to impose equal penalty. After due process of law, the original authority reduced the demand to Rs.2,81,742/- with interest and equal penalty. Appellant preferred appeal before the first appellate authority who after going through the records further reduce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re integrally connected with the ultimate production of goods. Sl. No Particulars Amount involved (Rs) 1 Accommodation services provided to Engineers 442 2 Brand Promotion 41,556 3 Modification and partition work of office space inside the factory area 9,484 4 Roofing work for factory sheds in order to maintain the temperature 11,593 5 Employees reimbursement of expenses 2,035 6 Aluminium partition work inside the factory for the supervisors 1,09,774 7 Service charges for copier machines inside the factory 325 8 Electrical work inside the factory area 8,549 9 Forex consultancy services 9,270 10 Services related to Banking 66,950 11 AMC relating to bio metric time recorder installed inside the factory 2,93 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the Appellant does not have an "intention to evade tax" and therefore extended period of limitation cannot be invoked against the Appellant. She stated that the demand and penalties against the appellants cannot be sustained and prayed that further proceedings in the matter be dropped. 3.2 The learned Authorized Representative for the respondent, reiterated the points given in the impugned order and prayed that the appeal may be rejected. 4. Heard the rival parties I find that the expression "activities in or in relation to manufacture" postulates activities which are integrally connected to the manufacture of the goods. The Hon'ble Supreme Court in Coca Cola India Pvt. Ltd. v. Commissioner of C. Ex Pune III- 2009 (15) S.T.R. 657 (Bom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... associated directly or indirectly in relation to manufacture of final products and transportation of final products upto the place of removal. I find that all the services as tabulated above have got a nexus to the manufacturing process as per the five categories listed by the Hon'ble Supreme Court above and hence input credit on the same cannot be denied. The services are not used primarily for personal use or consumption of any employee in their individual capacity. Most of the amounts involved are less than Rs.10,000/-. Further, there has been a frequent change in the definition of 'inputs' over a period of time and hence the legal issue was complex with different interpretation given by different forums from time to time. In any case, ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
