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Judgment
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 Department and charged on fix management basis. I am not aware of that which category of the service is covered.",
2.,HR Department services,These are the expenses related to HR Department.,
3.,"HR Policies (Percentage) services","These are the expenses related to HR Policies charged on fixed percentage basis.",
4.,"Government Liasion (Percentage) services","These are the expenses related to liasioning with various Govt Offices & charged on fix management basis.",
5.,"Repair & Control (Percentage) Services","These are expenses related to reporting and controlling. These are finance activity",
6.,"E x t e r n a l Communication
(Percentage) services.",It is a fix charges incurred for external communication,
7.,"Managing Director (Percentage) services","Managing Director was common so his expenses were charged to respective companies.",
8.,Accel- Order to services.,"M/s Styrolution India Ltd., Dahej had taken a project of business promotion named as Accelerator.
Expenses related to this activities were charges under this head",
9.,"Accounts & Management Information system (MIS) Services","These services are in relation to finance activities/matters. MIS services mean Management Information System Services. This is a kind of financial report/overall business activity.",
10.,"Accounts Pay (Percentage) Services","These are the expenses related to financial activities charges on a fix percentage",
11.,Accounts Receivable Service,"This is an activity in relation to collection of outstanding money.",
12.,Business Partner Services,"The service provider deputed some person for common business activity has been called Business Partner Services. 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.",
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.,"C orpora te 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.,"E m p l o y e e Communication
(Percentage) Services","It is a fix charges incurred for communication to employees.",
17.,"F a c i l i t y Management
(Percentage) Services","These are the expenses related to event activity management charged on fix management basis",
18.,"IT APPL HR SAP,I T APPL
SAP (Percentage), IT Comm (Percentage), IT Services, IT/IS Govern (Percentage) services","These are the services related to information technology like SAP Software etc.", 19.,ITG Automotive services,"For the business promotion Automotive sector was identified, expenses related to these activities were charged under this head.", 20.,Office Administration services,"The activity related to office administration like office management and maintenance were charged under this head.", 21.,"Office Service, office Space services","The activities related to office space allocation were charged under this head.", 22.,"Personal Computer Workplace
(Percentage) services","These are the activities related to Computers like personal computer, laptop, printers and software etc, charged on fixed percentage.", 23.,"Room Supply (Percentage) services","These are the expenses related to meeting room/conference hall charged on fixed percentage basis.", Sr No,Nature of Service.,Usage and requirement of Service,Findings 1.,"Advocate's Service (Legal Services).","The Legal services are availed from Advocates for Central Excise Matters.
Legal Services are Covered under inclusive part of definition of input services.","Legal Services for Central Excise matters are admissible for the purpose of Cenvat credit 2.,"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 a r e 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 office. The Marketing Department is looking after Marketing after goods manufactured by the Appellant's Dehaj Manufacturing Division. Services related to renovation or maintenance etc relating to office of the factory are covered under inclusive part of definition of Input services.","The services availed by Marketing Department are relates to rules of excisable goods and therefore admissible
5.,"Manpower Recruitment & Supply Services.","These services are relating to Supply of Manpower at Factory for various Agency's activities related to Production etc..
Services used directly or indirectly in or in relation to manufacture are covered under the definition of input services.
Judgement:
2014 (310) ELT 808 (Tri. Del.) Jaypee Sidhi Cement Plant Vs. CCE","Moreover, the case law cited by appellant squarely covers such services. Supply of manpower to factory is admissible as credit
6.,"Membership clubs Services","The Appellants are member of the Plastic Manufacturers association. Membership of Plastic manufacturers association is essential for manufacturer of plastics and therefore is covered under the inclusive as well as main part of the definition of input service. In this context, the Appellant rely upon the following judgements :-
1 2013 (31) STR 68 (T)BCH Electric Ltd
Vs.CCE
2015(37) STR 716 (All.) CCE vs. HCL
Technologies
2016(42) STR 332 (T) Racold Thermo
Ltd .vs. CCE 2016 (42) STR 494 (T) Hinduja Foundries Ltd vs. CCE","Moreover, the case law cited by appellant squarely covers such services. The service used in relation to manufacture and Marketing and therefore admissible.
7.,"Storage and Warehousing Services.","Warehousing charges for storage of our manufactured goods at Depot. As per Section 4 of Central Excise Act, 1944, Depot is place of removal and all services up to place of removal are covered under the definition of Input services. In this context, the Appellant rely upon the following judgements :
2013 (30) STR 214 (T) Castrol India Ltd.
Vs. CCE.
2008 (86) RLT 547 (Cestat) Metro Shoes
Pvt. Ltd. Vs. CCE","Moreover, the case law cited 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 a n d 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 Overseas
iii) CBE&C Instruction F. No.96/85/2015-
CX.I dated 07 12.2015","The Hon’ble High Court of Gujarat in the case of Cadila- 2013
(30) STR 3 has observed that it is not admissible for credit of service tax. Thus the credit is not admissible.
10.,"Online Telecom Network Service","Subscription for online data related to Chemical imports. imports Chemical data is useful for procurement of inputs therefore covered under the definition of input services.","The services used in relation to procurement of raw material it is therefore admissible for credit
11.,"Cargo Handling Services.","Services relating to Packing charges/labour for loading/ unloading of office records and computers for shifting from our Mumbai office to Dahej factory. Shifting of records pertaining to marketing Department to factory is necessary as per requirement and therefore covered under the inclusive part of definition of input services. Without records, factory cannot function & therefore the service relate to production of goods.
In this context, the Appellant rely upon the judgment in case of J.P. Morgan Services
(I) Pvt. Ltd. Vs. CST reported in 2016 (42) S.T.R. 196 (Tri-Mumbai)","Moreover, the case law cited by appellant squarely covers such services. These services a r e related to manufacture and management process.
Therefore, these are admissible for credit.
12.,"Commercial Coaching and Training Services.","Professional fees for Actuarial Calculations as per IAS 19- 31.12.2009 standards.
These services related to accounting of Gratuity & Leave encashment of employees working at Factory. This is related to Accounting function. Accounting is covered under the inclusive part of definition of input services.
Registration fees have been paid for programme on day to day Labour Laws for Managers. Coaching & Training are covered under the definition of input services.","The services are related to employees engaged in manufacture and sale of excisable good. The credit is admissible.
13.,IT Services,"IT Services related to conversion & validation of XBRL files as per MCA guidelines. 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 o f 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 to accounting, are covered under the definition of input services","Taxation and accounting are covered in the definition of inputs services. Therefore, the 16.,"Renting of immovable property services.","These services relate to Rent for our Marketing office at Mumbai. Services availed for office relating to factory are covered under inclusive part of definition.
In this context, the Appellant rely upon the following judgements:
(I) 2013 (30) STR 511 (T) National Engineering Inds. Ltd. Vs. CCE
ii) 2013 (30) STR 357 (T) Oracle Granito
Ltd. Vs.CCE
iii) 2016 (41) STR 990 (T) John Deere India Pvt. Ltd. Vs. CCE","credit is admissible.
Moreover, the case law cited by appellant squarely covers such services. Renting of premises is essential for marketing and rules of excisable goods. The credit is therefore, admissible.
17.,"Business Auxiliary Services","Subscription for magazine related to Plastic Products These services relate to marketing of goods and procurement of inputs, manufacturing operations etc. and are covered under the definition of input services definition.","Services are in relation to marketing of goods and procurement of raw material. It is admissible as credit.
2.,"Business Support
Services","Payment towards 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 Procurement, sales, Production, Quality Control, Accounts & Finance, & Inventory Management Maintenance
etc. & therefore are covered under the definition of Input Services.
In this context, the Appellant rely upon the judgment in case of Castrol India
Ltd. Vs CCEr eported in 2013 (30) STR 214 (T).","Moreover, the case law cited by appellant squarely covers such services.
Services are used for accounting activity which is specifically included in the definition of inputs services. Therefore, the credit is admissible.
5.,"Technical Testing
and Services Analysis","Technical testing & Analysis of Finished
Goods. This is required for ensuring quality of manufactured goods and therefore covered under the definition of input services. In this context, the Appellant rely upon the following judgments :
i) 2013 (30) STR 572 (T) Semco Electric
P. Ltd. Vs.CCE
ii) 2013 (30) STR 3 (Guj.) CCE Vs.
Cadila Healthcare Ltd.","Moreover, the case law cited by appellant squarely covers such services. The services are in relation to quality of control of excisable
goods. The credit is therefore, admissible