https://www.taxtmi.com/css/info/rss_sitemap/rss_feed.css?v=1746094055 https://www.taxtmi.com Business/Tax/Law/GST/India/Taxation/Policies/Legal/Corporate Tax/Personal Tax/Vat Law/Legal Information/Tax Information/Legal Services/Tax Services Tax Management India. Com / MS Knowledge Processing Pvt. Ltd. All rights reserved. One stop solution for Direct Taxes and Indirect Taxes https://www.taxtmi.com/caselaws?id=763302 https://www.taxtmi.com/caselaws?id=763302 CENVAT Credit - input services - transportation by road service - technical testing and analysis service - denial on the ground that no supporting documents were submitted. Disallowance of the input credit on the disputed services - no supporting documents were produced - HELD THAT:- On perusal of the documents filed by the appellants as part of the appeal papers in respect of business auxiliary service, C F agent service, management consultancy service, consultancy/professional charges, storage/warehousing charges. The aforesaid services have been used in or in relation to the manufacture of final products inasmuch as these services are in the nature of bank guarantee commission paid to the bank for raising funds for working capital, services used for obtaining advance licenses for the final product, surveillance audit service, C F agents service upto the place of removal i.e., Zirakpur and Guwahati depots, management of certain operations, services of environment clearance certification and training, ISO audit etc., godown/warehousing services at the depots. Further, it is also found that the learned Commissioner (Appeals) had not given any finding in rejection of the input credit on these above input services, except that he found that there is no supporting documents. In view of the above, and on the basis of supporting duty/service tax paying documents produced by the appellants, CENVAT credit in respect of the above input services are allowed. Transportation service - HELD THAT:- The representative copy of the invoices evidencing the service tax paid thereon and the excise invoices issued by the appellants for stock transfer from their factory to their sales depots. In view of the above factual position, CENVAT credit on the above service of transportation by road allowed being the eligible credit in respect of input service having been covered under the inclusive category of specific services viz., outward transportation upto the place of removal . Technical testing and analysis service - HELD THAT:- The appellants have produced three invoices issued by the Mumbai Waste Management Ltd., for comprehensive analysis and technical testing of waste sample. As testing of waste arising in the course of manufacture is a legal requirement for any manufacturer for compliance with environmental laws and regulations of the State, it is found that such credit of service tax in respect of testing and analysis service is eligible as input service. Further, the certificate issued by the Mumbai Waste Management Ltd., for the appellants-manufacturer factory at Tarapur, being a registered member for safe and secure disposal of hazardous waste in terms of hazardous waste management rules and regulations of the State, in the nature of input service used is directly in relation to manufacture in compliance with statutory regulations dealing with hazardous waste management. Such certification is not in any way connected with the membership of a club, which, when used primarily for personal use or consumption of any employee alone, is excluded under the category of specified exclusions given under clause (C) of Rule 2(l) of the Rules of 2004. Hence, the input credit of service tax paid on technical testing and analysis, obtaining registered membership for safe disposal of hazardous waste by the factory of the appellants, is eligible as input service in terms of Rule 2(l) of the Rules of 2004. The impugned order is set aside to the extent it had disallowed the CENVAT Credit, imposed penalty on the appellants and the appeal filed by the appellants is allowed in their favour with consequential relief, if any, as per law. Case-Laws Central Excise Mon, 16 Dec 2024 00:00:00 +0530