TaxTMI 
TaxTMI 
2016 (3) TMI 994
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....ppeals is same, therefore both the appeals are disposed of by a common order. 2. The brief facts of the present case are that the appellant is a 100% EOU and the products manufactured by the appellant are entirely cleared for export. They manufacture excisable goods electrical wires, accessories of aluminium, zinc and copper alloys. The entire production is exported out of India except for waste and scrap arising during the process of manufacture which is cleared in DTA on payment of Central Excise duty. However, the quantum of the said sale is very small and therefore credit of service tax on input services remain unutilised and got accumulated. Thereafter the appellant filed two refund claims under Rule 5 of CENVAT Credit Rules, 2004 f....
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....633 5 Insurance Premium 74,417/- -- 6 CHA (GTA) 721/- 160/- 7 BAS (Carpentry) -- 541/- 8 GTA (double) -- 173/- Total 2,46,739/- 1,10,439/- 4. The appellants filed appeals against the aforesaid Orders-in-Original, to the extent it rejected the refund of credit of Rs. 2,46,739/- and Rs. 1,10,439/-. The Commissioner (Appeals), Central Excise, Pune I passed a common Order-in-Appeal dated 26.4.2010 rejecting the appeals filed by appellants. Hence, the present appeals (Appeal No. E/1345/2010 Unit I & Appeal No. E/1346/2010 Unit II). 5. The counsel for the appellant submitted that the impugned order passed by the Commissioner (Appeals) is wrong on facts as well as on law and ....
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....s of CENVAT Credit Rules, 2004. The ld. Counsel cited the case of Coca Cola India P. Ltd. 2009 (15) STR 657 wherein the Bombay High Court held that any activity which is essential for the smooth functioning of the business would qualify as activity relating to business and thus, an input service . He further submitted that in the present appeals, the appellants are contesting the eligibility to Cenvat credit on various services as given in the chart above. 6. Now coming to various input services on which Cenvat Credit has been denied by the impugned order. Firstly, coming to the Chartered Accountant service of Unit-I. The counsel for the applicant submitted that appellant acquired a manufacturing unit in Jaipur for expansion of their bus....
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....ice having registration as Input Service Distributor (ISD). It is also not in dispute that the payment of insurance premium has been made by Unit I. Unit I, being an ISD, can take and distribute the input service credit to any one Unit or between all the units. Rule 7 of Cenvat Credit Rules, 2004, during the period in dispute, did not bar the ISD from distributing the entire input service credit to any one unit. Therefore, Unit I is eligible to take the credit on the basis of insurance premium bills in question. In support of the above settled legal position, the appellants rely on the decisions of the Hon ble Karnataka High Court in CCE Vs Ecof Industries Pvt. Ltd. 2011 (271) ELT 58 (Kar.) 8. The next service on which the credit has bee....
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.... by CHA (along with supporting invoices) can be clearly linked to their import consignments. Therefore, it is submitted that the services received from CHA and other service providers qualify as input service and credit of service tax paid on the same is admissible. In support of the admissibility of credit on the aforesaid CHA service, the appellants rely on the following decisions:- i) Amar International Vs CST 2015 (37) STR 810 (T) ii) Devesh Agriexim Pvt Ltd Vs CST 2014 (36) STR 1116 (T) iii) Chandra Engineers Vs CCE 2013 (30) STR 699 (T) 9. On the other hand, ld. AR reiterates the findings of the Commissioner and submitted that the services on which the Cenvat Credit has been denied is not in or in relatio....
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....ch factory or premises, advertisement or sales promotion, market research, storage upto the place of removal, procurement of inputs, accounting, auditing, financing, recruitment and quality control, coaching & training, computer networking, credit rating, share registry, security, business exhibition, legal services, inward transportation of inputs or capital goods and outward transportation upto the place of removal; but excludes,- 12. In this case the lower appellate authority has disallowed the Cenvat Credit on the ground that these services do not fall in the category of input services as stated supra and also the amendment carried out by the central government in Rule 2(l) of CENVAT Credit Rules, 2004 is beyond the power of the Cent....