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2014 (7) TMI 230
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....cility of Cenvat credit of central excise duty paid on inputs and capital goods and service tax paid on input services, which according to them had been used in or in relation to manufacture of their final products. The dispute in this case is in respect of Cenvat credit of Rs. 81,90,178/- taken by them in respect of courier service used for sending documents, landline telephone/mobile phone service and insurance of plant and machinery. The department was of the view that these services are not eligible for Cenvat credit and accordingly a show cause notice dated 03/12/08 was issued for recovery of the above-mentioned Cenvat credit of Rs. 81,90,178/- from the appellant alongwith interest and also for imposition of penalty on them. Subsequent....
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....y have to be treated as 'activities relating to business', as in terms of this judgment of Hon'ble Bombay High Court, the definition of 'input service' not only includes the services which are used in or in relation to manufacture of final product, whether directly or indirectly i.e. the services covered by the main definition clause, but also the services which are used in relation to business of manufacturing, that courier services used for despatch of documents and services for insurance of plant and machinery are very much part of the business of manufacturing, as no prudent manufacturer would carry out manufacturing operations without insuring his plant and machinery and other costly assets, that the Commissioner....
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....issions, the impugned order is not correct, that the appellant have a strong prima facie in their favour and, hence, the requirement of pre-deposit of Cenvat credit demand, interest thereon and penalty may be waived for hearing of the appeals and recovery thereof may be stayed till the disposal of the appeals. 4. Shri Yashpal Sharma, the learned DR, opposed the stay applications by reiterating the findings of the Commissioner and pleaded that the services of courier for despatching documents to customers, dealers etc., the services of telephone used by the employees for company's work and services of insurance of plant and machinery have no nexus, whatsoever, with the manufacture of final product and accordingly these services are no....