AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2014 (11) TMI 963
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....dmissible, interest under Section 11AA (earlier Section 11AB) of the Central Excise Act, is confirmed and penalty of Rs. 14,000/- imposed under Rule 15(3) and Rs. 4,000/- imposed under Rule 15(1) of the Cenvat Credit Rules. 2. The appellants manufactured Non-Alcoholic Beverage Base and Mixture of Chemicals (Concentrates) and sell Concentrates to bottlers authorized by Coco Cola Company USA, who in turn manufacture beverages from the Concentrates and sell the same to customers under brand name/trade market owned by Coco Cola Company, USA. During July 2005 to March 2011, the appellants availed Cenvat Credit on the following services provides by different service providers: (i) Service of QMS audit at bottler's factory (ii) ....
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....tries Ltd. Vs. CCE, Hyderabad reported in 2013 (31) STR 357 (Tri.-Bang.). 4. As regards service for verification of sales generating assets, they had invested a lot of money in these assets, correct usage of these assets results in better visibility which translates into more sales of beverages which in turn results in higher sales of Concentrates. On event management service they stated that it helps boost morale of the employees resulting in greater efficiency. They relied on Endurance Technologies Pvt. Ltd. Vs. Commissioner of C.Ex., Aurangabad reported in 2013 (32) STR 95 in which case credit of service tax on Mandap Keeper services to host the Annual Day function of company was allowed. On landscaping, the contention is that since mod....
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....t balance to recover the duty liability in a month and therefore demand of interest is not justified. 6. The impugned order held that the above services do not fall within the definition of input service in Rule 2(l) of the Cenvat Credit Rules. Because services such as quality audit, mango pulp testing, verification of assets, physical verification of inventories are services provided either at the end of supplier of raw material to bottler, or at the bottler's premises itself. It was found there is no nexus between the service rendered and the business carried on by the assessee. Especially, when the relationship between appellant and bottler is on a principal to principal basis. He relied on decision of Hon'ble Mumbai High Court ....
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.... services of QMS Audit and verification of inventories are rendered at the premises of the bottler. The fact remains that the appellant and bottlers transact on a principal to principal basis. They are separate business entities with separate Central Excise Registration. The appellants may have quality control over the bottlers unit to safeguard their own interest but it does not entitle the appellant to avail Cenvat Credit on activities performed in the factories of bottlers. Judgement in the case of Coca Cola Pvt Ltd. (Supra) held that service tax paid on advertisement, sales promotions, and market research is admissible as credit even if the advertisement publicises the sale of final products manufactured by the bottlers. In that case th....
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.... the appellants there appears to be no nexus with the manufacture of Concentrates by the appellant. Prima facie credit of service tax does not appear to be admissible in case of QMS Audit, inventory audit at bottlers' end, mango pulp testing at suppliers' end and verification of assets at retailers. 10. The Credit of service tax towards maintenance, charges for coffee vending machines would be admissible because the machines are owned by the appellants and used for dispensing the tea/coffee for retailers. As it has nexus to their business activity. The credit of service tax paid by an event management company for organizing events such as functions to honour employees at Bombay whereas the manufacturing activity is at Pune cannot b....