TaxTMI 
TaxTMI 
2012 (6) TMI 494
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....in the ambit of the definition of this term under Rule 2(l) of the CENVAT Credit Rules, 2004. The appellant company had held shares in another company namely M/s. Bharti Airtel Ltd. These shares were disposed of by the appellant by availing the services of stockbrokers during the period from June to November 2008. CENVAT credit of the Service Tax and Education Cess paid by the stockbrokers was taken by the appellant, amounting to Rs. 1,66,052/- for June-August and Rs. 69,845/- for September-November 2008. In show-cause notices dated 12.1.2009 and dated 5.3.2009, the department proposed to recover these amounts with interest thereon from the appellant and to impose penalties on them. These show-cause notices alleged that the service used by ....
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....lding accounts with other banks also, the money from the above current account has been transferred to other banks also I state that, in the bank account, distinction cannot be maintained based on the source of money credited to the account. The bank account of the company will contain thousands of transactions of debits and credits and it is not able to trace the source of money for each cheque issued by the company or each debit made to the bank account. Once the credit is available, it is used in the ordinary course of business for all the business purposes. In this case, I state that all the sale proceeds arising out of Bharti Airtel shares have been used for the company's business purposes alone, I state that the sale proceeds have....
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....acture of excisable goods and rendering of taxable services). It is, therefore, submitted by the learned counsel that the appellant satisfies the test laid down by the Hon'ble High Court in para 35 of the judgment in the cited case and therefore the availment of CENVAT credit on stockbroker's service cannot be faulted. Learned counsel has also relied on Bharat Fritz Werner Ltd. v. CCE [F. O. No. 91 of 2011, dated 8-2-2011] (Trib. - Bang.) wherein one of the services considered by the Tribunal was stockbroker's service and CENVAT credit was allowed to the assessee in respect thereof. Learned counsel further points out that the High Court of Karnataka has allowed CENVAT credit even in respect of activities remotely connected with ....
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....as used by the appellant for sale of their shares held in another company. The question whether the activity of sale of shares had any nexus with the business of the appellant would depend on how the sale proceeds were applied. The Working Director's affidavit does not bring out a clear picture. It contains only general averments. There is nothing in this affidavit to show that the proceeds of sale of shares were applied to any of the activities mentioned in the Memorandum of Association. The main activity mentioned in the Memorandum of Association is manufacture of television sets and other electronic instruments, equipments, devices, components etc. "Ancillary objects" mentioned in the Memorandum of Association include acquisition of ....
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...." in the definition of input service is exhaustive and is restricted to the services named therein, is also devoid of any merit, because, the substantive part of the definition of 'input service' as well as the inclusive part of the definition of 'input service' purport to cover not only services used prior to the manufacture of final products, subsequent to the manufacture of final products but also services relating to the business such as accounting, auditing.... etc. Thus the definition of input service seeks to cover every conceivable service used in the business of manufacturing the final products. Moreover, the categories of services enumerated after the expression 'such as' in the definition of 'input ser....
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....tion to the manufacture of goods, the burden lay on the noticee to establish that the said service was covered by the inclusive part of the input service, if not by the main part. Obviously, the department in the show-cause notices relied on the main part of the definition. The appellant is relying on the inclusive part of the definition. In this scenario, the department's right to contest the appellant's claim cannot be defeated on the wrong premise that such contest is beyond the scope of the show-cause notices. Before this Tribunal, arguments of both sides are within the scope of the dispute. It would follow that the Revenue is entitled to rely on the Hon'ble High Court's judgment interpreting the inclusive part of the de....