2016 (4) TMI 777

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....ervices (C&F Services, for short) received from abroad for selling their goods. The Respondent Company was discharging its service tax liability, based on Section 68 (2) of the Finance Act, 1994 read with Rule 2(1)(d)(4) of the Service Tax Rules, 1994. During the period from June 2006 to March 2007, on the scrutiny of the returns, it was noticed that the Respondent had availed the credit of the service tax paid by them for the said C&F Services and utilized the same for payment of central excise duty for clearance of their finished goods. 2. A show cause notice dated 21.11.2007 was issued to the Respondent demanding the credit besides proposing for levy of interest and penalty. The adjudicating authority had vide his Order in Original No....

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....in the inclusive part of the definition before the words "accounting, ".."cannot be read so wide. Besides other grounds which are more or less repetitive in nature and their contention being aimed at the relief sought for i.e., allowing their appeal by setting aside the order in appeal. 4. Heard both sides. The appellant was represented by Shri K.P.Muralidharan, A.C., the Ld. AR, who reiterated the grounds of appeal and the findings in the Order in Original and the respondent was represented by Ms. Minchu Mariam Punnoose, Advocate, who clinged to the findings in the Order in Appeal and further stated that in the Order in Original, there was no finding whatsoever justifying the imposition of penalty and invoking extended period which itse....

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....of foreign clearing & forwarding agent was an integral part of the respondent's business. It can hardly be said that the activity carried out by the Foreign C&F Agent is not an activity "relating to business". The word "business" by itself is all embrasive to refer to activity and the definition given in the input service is "activities relating to business". The findings of the Commissioner (Appeals) that the clearing & forwarding service received is vital for business activity cannot, therefore, be faulted with. Reliance placed by the Commissioner (Appeals) in para 25 of the Judgment of the Bombay High Court in the case of Coca Cola Pvt. Ltd. Vs. Commissioner of Central Excise, Pune, 2009 (15) STR 657 (Bom.) dealing with the expression "b....