2015 (11) TMI 467

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....ical services for the training conducted during the relevant period. The revenue authorities were of the view that the Cenvat credit is not available as the training was conducted for the staff of an agency which was providing the business auxiliary services. A show cause notice was issued for demand of such ineligible Cenvat credit by invoking extended period, on an allegation that there was suppression of the fact on the part of appellant. The show cause notice was contested on merits as well as on limitation. The adjudicating authority after following the due process of law confirmed the demands raised along with interest and also imposed equivalent amount of penalty. Aggrieved by such an order, an appeal was preferred to the first appe....

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.... 577 (Bom) for this proposition, more specifically to paragraph number 27,28,34& 35. 4. Learned departmental representative on the other hand would submit that the appellant has outsourced the activity of vending/dispensing of CNG at various outlets and the service providers charge service tax under business auxiliary services to the appellant. It is his submission that the training activity which is undertaken is of the staff who are dispensing the CNG and are not the employees of appellant. He would then take me through the definition of the input service as is enshrined in rule 2(l) of Cenvat credit rules 2004. It is his submission that the services of dispensing CNG are not used in the manufacture of final products nor for the cleara....

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.... involved in this case is regarding the denial of Cenvat credit of the service tax paid on the services received for training of persons in dispensing of CNG in retail outlets. 8. It is undisputed that the dispensing activity of CNG in the retail outlet is undertaken by personnel who are the employees of service provider and not of appellant. This service provider is discharging service tax under the category of business auxiliary services; Cenvat credit availed by the appellant is of the service tax paid on the services rendered for training of the personnel. In my considered view appellant as no case on merits as even though appellant has paid for the services rendered to training of the personnel, the said services or not rendered to ....