2016 (9) TMI 538

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....e falling under Chapter 94 of the Central Tariff Act 1985. They have availed cenvat credit for excise duty paid on inputs and capital goods and they have availed cenvat credit of Service Tax paid on input services. The appellants were issued with the show cause notice dated 01.02.2013 requiring them to reverse the credit. The appellant has contended that these services are input services as per definition in Rule 2(l) of CCR and are eligible to avail credit of the services. The Additional Commissioner disallowed the credit on input services to the extent of 25,49,624/- as per the chart given under and also imposed penalty of Rs. 2,00,000/- S. No Input Services Amount 1. Rent-a-cab Services Rs.25,234/- 2. Air Travel C....

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....a statutory obligation prescribed under Section 11 of the Factories Act, 1948, to maintain the factory premises neat and clean and that expenditure incurred towards the same, when included in the value of the final product, credit on such services cannot be denied and placed reliance on the decision of the Hon'ble Madras High Court in the case of Commissioner of C.Ex & ST, LTU Chennai Vs Rane TRW Steering Systems Ltd and the decision of this Hon'ble Court in the case of Hinduja Foundries Ltd. Vs Commissioner of C.Ex, Chennai-I. 3.1 The Ld. Counsels further submitted that with respect to air travel services, such services were employed only for the Company's executives to travel in order to upgrade the technology and ensure un....

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....to install the final product at the premises of the customer and only upon such installation, the final product would become operational and purpose of manufacture would fructify. Therefore, the submission of the Learned Counsel for the appellant cannot be faulted with and the order of the Learned Additional Commissioner in appellant's own case whereby the learned adjudicating authority has allowed the credit on Commissioning and installation services also strengthens their case. 6. Regarding Housekeeping services, I find that the said services are employed by the appellants only in compliance of Environmental laws and in particular the Factories Act, 1948, and when money is spent for the purposes of maintaining the factory premises ....