TaxTMI 
TaxTMI 
2013 (12) TMI 271
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....coa & Cocoa products and Water Products falling under Chapter No. 18 and 19 of the First Schedule to the Central Excise Tariff Act, 1985. During the audit of the records of the assessee, it was observed that, the assessee had availed CENVAT credit on telephone Service and Courier services availed by them, which were not the input service as per the definition of the input service provided under Rule 2(1) (ii) of the Cenvat Credit Rules 2004. A Show Cause Notice dated 14.11.2008 was issued. 3. The Adjudicating Authority after due deliberation, decided the above show cause notice vide Order-in-Original No. 43 to 45/CEX/Demand/AC/2010 dated 15.11.2010 thereby the denial of CENVAT Credit proposed in the show cause notice was dropped. On a re....
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....uded which may or may not meet the criteria prescribed in the first leg of the definition. This is the so called inclusive part of the definition which specifies the services to be treated as 'input service' irrespective of the criteria stipulated in the first leg of the definition. These are:- i. Services used in relation to setting up, modernization, renovation or repairs of a factory, premises of provider of output service or an office relating to such factory or premises. ii. Advertisement or sales promotion, iii. Market research, iv. Storage up to the place of removal, v. Procurement of inputs. vi. Activities relating to business, such as (a) accounting. (b) auditing. (c) financing. (d) recruitment and quality control....
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.... as supervision, giving and taking, of orders, consultation and advice work etc. as claimed by the assessee. 8. Revenue also referred to lack of evidence to show that courier Services was availed exclusively to facilitate manufacture of the final products. 9. Commissioner (Appeals) after due examination of the matter decided that the services of telephone and courier cannot be covered in the definition of inputs or input services to be eligible for input service credit. He further termed these activities as not related to business as these activities have been allowed in the definition in a restrictive manner. The term 'such as' been clarified in number of decisions as equivalent meaning to 'for example'. All these services elaborated....
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....can the final product emerge without the use of input service. (Paras.14, 19) Law permits credit of duty/tax in respect of inputs/input services only when used in or in relation to manufacture of excisable goods. Credit not provided based on inclusion of value of input/input service in value of finished excisable goods. CAS-4 requires the cost of subsidy towards subsidized food as several other fringe benefits to be included in cost of productions cannot be consideration for allowing credit of service tax paid on outdoor catering service unless such service found to be used in or in relation to manufacture of respective finished excisable goods manufactured by respondents. (Para 17, 18, 19, 21) 10. Appellants have came in appeal again....
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....both sides. 15. I have gone through the fact on records, contents of order-in-Original, grounds of review order and Order-in-Appeal including judgments and Boards circular on the issue. 16. I find that main issue for determination is whether input service credit availed on the service of landline telephone service and courier service is available or not. 17. Matter is no more res integra. Following Supreme Court decision in M/s Maruti Suzuki Ltd. and Bombay High Court in Ultra Cement, Hon'ble Tribunal has consistingly held that input service credit is available on landline telephone service as it is used for business purpose. Similarly it has been held that mobile telephone service is also entitled for credit. CBEC circular (supra....