2016 (7) TMI 1102

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....During the course of audit, it was observed that the appellants had availed irregular credit on input services during the period April 2008 to March 2009. A show-cause notice was issued to the appellants proposing disallowance of credit and recovery of the same along with interest besides proposing imposition of penalty. After adjudication, the primary authority ordered recovery of ineligible service tax credit along with interest and imposed penalty. The appellants carried the issue in appeal and vide the order impugned herein, the Commissioner(Appeals) upheld the same. Being aggrieved the appellants have filed the present appeal. 3. The learned counsel for the appellant Shri Karana Talwar argued both merits and issue of limitation. He ....

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.... all the impugned services were availed for the business of manufacture. He placed reliance on the following cases:- 1. CCE&C, Aurangabad Vs. Endurance Technology (P) Ltd. [2015-TIOL-1371-H-MUM-ST] 2. CCE Vs. Ultratech Cement Ltd. [2010(260) ELT 369 (Bom.)] 3. Deepak Fertilizers & Petrochemicals Corporation Ltd. Vs. CCE, Bangalore [2013(232) STR 532 (Bom.)] 4. Mawana Sugars Ltd. Vs. CCE&ST LTU, Delhi [2015(38) STR 424 (Tri. Del.)] 5. Coca cola India Pvt. Ltd. Vs. CCE, Pune-III [2009(242) ELT 168 (Bom.)] 5. Per contra, the learned AR Shri Amish Gupta contested that the credit on fabrication services is not admissible. He referred to the purchase order and submitted that the price fixed is Ex-wo....

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....tinction between inputs or capital goods on the one hand and input services on the other other. Clause (i) above provides that the service tax should be paid on any input or capital goods received in the factory of manufacture of the final product. Such a restriction, however, is not imposed in regard to input services since the only stipulation in clause (ii) is that the input services should be received by the manufacturer of the final product. Hence, even as a matter of first principle on a plain and literal construction of Rule 3(1) the Tribunal was not justified in holding that the Appellant would not be entitled to avail of CENVAT credit in respect of services utilized in relation to ammonia storage tanks on the ground that they were ....