2016 (9) TMI 133

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....of the credit and in Appeal No. E/2995/2011 the issue involved is whether the appellant is entitled for cenvat credit of input service tax on Brokerage and Commission services. All the three appeals are being disposed of by this common order. For the purpose of convenience, the facts of Appeal No. E/2997/2011 is taken. All the three appeals are being directed against the impugned orders dated 29 & 30.06.2011 passed by the learned Commissioner (Appeals) rejecting the appeals of the appellant and confirming the Order-in-Original. Briefly the facts of the present case are that the appellant is engaged in the manufacture of motor vehicles and they availed benefit of cenvat credit on inputs, capital goods and input services as per the Cenvat Cre....

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....nai-IV-2014 (36) STR 45 (Tri.-Chennai)=2014-TIOL-954-CESTAT-MAD. (v) Shree Khedut Sahakari Khand Udyog Mandli Ltd. Vs. CCE, Cus. and ST, Surat-II 2015-TIOL-2373-CESTAT-AHM (vi) M/s. Sage Metals Ltd. Vs. CCE, Delhi-I 2016-TIOL-1114-CESTAT-DEL (vii) J.K Tyre & Industries Ltd. Interim Order No. 59/2016 dated 29.02.2016 4. On the other hand the learned AR submitted that as per Rule 14 of the Cenvat Credit Rules, appellants were liable to pay interest even if credit was reversed before utilization. He placed reliance on the judgments rendered by Hon'ble Supreme Court in the case of UOI Vs. Ind-Swift Laboratories Ltd. 2011-TIOL-21-SC-CX. The appellant in these two appeals had wrongly taken the credit and had reversed....

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....y the Punjab & Haryana High Court with regard to the words or appearing twice in Rule 14 of the Cenvat Credit Rules, 2004. The Hon'ble High Court of Karnataka has categorically held that interest is not to be paid on the credit is reversed before utilization. Further the full Bench of the Tribunal in the case of J.K Tyre & Industries Ltd. vide Interim Order No. 59/2016 dated 29.02.2016 has held that interest is not to be paid on irregular cenvat credit if the same is reversed before utilization. Therefore keeping in view the judgment of the Hon'ble Karnataka High Court in the case of Bill Forge Pvt. Ltd. cited supra and the Larger Bench decision of the Tribunal in the case of J.K. Tyre & Industries Ltd. cited supra, I am of the considered o....

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....duced below: "Input service means any service,- (i) used by a provider of taxable service for providing an output service; or (ii) used by the manufacturer, whether directly or indirectly, in or in relation 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 an 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,....