2013 (6) TMI 367

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....ted in Chennai. The Head Office is registered as an Input Service Distributor and at the Head Office distributed the credit to the factory at Tada, Nellore District for utilization. The credit has been taken in respect of services like Group Insurance of Employees, Health Insurance of employees, Rent-a-cab services, Air Travel Services, etc. Revenue was of the view that these services did not have nexus with the manufacturing activity and they proposed to deny credit on such services and issued a show-cause notice for the same which culminated in an adjudication order denying credit to the extent of Rs. 69,127/-. On an appeal filed with the Commissioner (Appeals), the Commissioner (Appeals) has allowed the said credit. Aggrieved by the orde....

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....respondent. The argument of Revenue that the services are not directly related to the manufacturing activity is not a sound argument because of the intangible nature of services in general and definition of input services at Rule 2 (l). The definition has given a very broad definition specifically including services which are usually availed at the Head Office like accounting, auditing, financing etc. Therefore, I do not find any merit in the argument of the Revenue that there is no adequate nexus and in this matter I also take into consideration the circular issued by CBEC vide Circular No. 120/1/2010 ST dated 19.01.2010, and the various decisions of the Court and Tribunal relied upon by the Commissioner (Appeals). 5. However, in respec....