TaxTMI 
TaxTMI 
2008 (1) TMI 155
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....and also ordered for demand of interest as applicable under the provision of Section 11AB of the Central Excise Act, 1944. 2. The relevant facts that arise for consideration are the appellant i.e. Metro Shoes Pvt. Ltd. (MSPL) manufactured shoes in their factory premises and cleared the same on payment of duty to their own retail outlets. For manufacture of such goods, the said MSPL availed Cenvat credit of the duty paid on the inputs and also on the input services. The scrutiny of the records filed by the appellant revealed that they had availed Cenvat credit under Rule 3 of the Cenvat Credit Rules, 2004 on input services like retail agents commission, selling agents commission, advertising expenses, clearing and forwarding charges, tele....
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....time from their showrooms and the clearance which took place from their manufacturing premises was only inter depot or inter showroom transfer. It was also contended that the commission charges which are paid to those people in the retail showroom were in fact commissions and Service tax was paid by such people on said commission and they have correctly availed credit of such input services. After hearing the appellant, the adjudicating authority came to the conclusion that the appellant were not eligible to avail credit of the input stage services and coming to such conclusion the adjudicating authority passed the following order: "23(a). In view of the detailed discussion above, I, hereby, disallow the in-admissible Cenvat credit, as d....
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....hority under the following heads: (i) Services directly and wholly attributable to goods manufactured by the appellant Rs. 62,71,473/- (ii) Services directly and wholly attributable to trading activities Rs.13,27,497/- (iii) Other overhead expenses incurred for running retail outlets Rs. 2,51,581/-. 4. It is his submission that the credit of the service tax availed of the above three amounts was correct. He submits that the service tax element on all the above three heads pertains to the business auxiliary services (commission paid to commission agents), advertisement services travel agency services (including transportation), storage and warehousing and other overhead like maintenance and repair services, insurance, internet, s....
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....n agent is a routinely adopted marketing practice, the denial of credit does not arise. He submits that the entire demand as confirmed by the adjudicating authority is liable to be set aside and prays so. 5. Ld. SDR, on the other hand, emphasized that the services utilized by the appellant from the commission agent do not in any way fit into the definition of the input services as provided under statute. It is his submission that the final products i.e. shoes are manufactured by the appellant in their factory premises. Once the shoes are fully manufactured and cleared from the factory premises, the question of utilization of services of commission agent does not arise. Any commission paid by the appellant to the commission agent, admitti....
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....lation to the manufacture of final products and clearance of final products from the place of removal, and includes services used in relation to setting up, modernization, renovation or repairs of a factory, premises of provider of output service or on office relating to such factory or premises, advertisement or sales promotion, market research, storage up to the place of removal, procurement of inputs, activities relating to business, such as accounting, auditing, financing, recruitment and quality control, coaching and training, computer networking, credit rating, share registry, and security, inward transportation of inputs or capital goods and outward transportation up to the place of removal;" It can be seen from the above reproduc....
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....ory premises to their own showrooms located in various place, for e.g. GTA, warehousing facilities, C & F agents, insurance, internet services, security, courier services, telecom services, pest control services, bank services etc. and service tax paid on such services would be eligible as credit being the services used by the appellant directly or indirectly in or in relation to the final product and the clearance of the same from the place of removal. As such, we find that the credit of the service tax paid by the service providers and charged to appellant till the sale of the goods from the retail showroom, the appellant is eligible to avail said credit as input service credit. 7. The duty confirmed on the service directly and wholly ....