2016 (9) TMI 896

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....f excise. During the period April 2013 to December 2013, Appellants had paid Service Tax on various services and had availed CENVAT Credit of Service Tax paid on the same and utilized the same while discharging the excise duty liability on the finished petroleum products cleared from their refinery. Department took the view that the above services were not eligible for CENVAT Credit and the Service Tax paid on these items were in no way involved in or in relation to the manufacture the said services were not eligible for CENVAT Credit. Hence SCN dated 29.04.2014 was issued interalia proposing recovery of allegedly irregular input credit availed during the period April to December 2013 amounting to Rs. 2,02,82,343/- with interest thereof, an....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....4. On behalf of the department, Learned AR Sh. Nagaraj Naik opposed the appeal and submitted that the adjudicating authority denial of credit on the said services was correct in law. He placed reliance on the ratio of Tribunal decision in Jubilant Life Sciences V/s CCE, Noida [Final Order ST/A/631-632/2012-Cus (PB) dated 05.10.2012] 5. For better understanding of the nature of services where credit availed is disputed, the reasons for their denial by the adjudicating authority and the appellant's own contentions thereof, it would be useful to extract the following table submitted in the grounds of appeal: Page of O-I-O Para of O-I-O Grounds given in the impugned order for disallowing the CENVAT Credit Appellants' contentions 20 4....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... by the Refinery. The Appellants rely on the decision of Balkrishna Industries Ltd., Vs CCE, Aurangabad reported in 2010 (254) ELT 301 (Tri.Mum) - where CENVAT Credit availed on House Keeping services was ordered to be eligible for CENVAT Credit. 20 48 Commissioning service Commissioning Service: Amount involved Rs. 1,23,600/-. Covered by only one invoice issued by M/s Projects Development India Ltd. The service for the 2 units Flue Gas De-sulpharisation Unit (FGD) & Purge Treatment Unit (PTU). FGD is set up to reduce the sulphur emission. FGD & PTU Process units are set up in the refinery connected with refining activities. Accordingly, the service tax paid to Service Provider against the valid tax invoice is eligible for CENVAT Credit....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ectly, in or in relation to the manufacture of final products and clearance of final products, up to the place of removal, and includes services used in relation to 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, accounting, auditing, financing, recruitment and quality control, coaching and training, computer networking, credit rating, share registry, security, business exhibition, legal services, inward transportation of inputs or capital goods and outward transportation up to the place of removal; but excludes services,- (A) specified....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....of Rule 2(I). 8. With reference to credit on commissioning service appellant has clarified that this relates to project monitoring consultancy charges for FGD and PTU units; hence I hold that this service has indeed been utilised in relation to refining activities and hence not excluded by Rule 2 (I). 9. With reference to credit on house Keeping Services, it is not the case that there are used for the personal use or consumption of any employee. The appellant is a manufacturer, a refinery, and if they utilise the services of a service provider to perform housekeeping functions like cleaning etc., such services are very much required for the proper upkeep of premises which in term necessary for the manufacturing activities, hence they shou....