TaxTMI 
TaxTMI 
2016 (10) TMI 578
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....xcise Tariff Act, 1985. The appellant is also rendering erection, commissioning and installation services (ECIS) to various power distribution companies (DISCOMS). They have registration under Central Excise and pay Central Excise duty on goods manufactured by them. They have a separate service tax registration under which they discharge service tax on the services rendered by them. For both the manufacture of goods and rendering of service, they are registered for the same premises. They have maintained a common Cenvat account in which credit on inputs, capital goods as well as services availed have been taken. They undertook Turnkey projects for power distribution companies which included supply of goods - part of which was manufactured b....
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....inal products as well as provision of taxable services. The insurance services were also used by the appellant for the purposes of security of the goods and services supplied and are in relation to its business activities and accordingly are squarely covered by the definition of input service. There is no legal basis for the Revenue to restrict the Cenvat credit to the extent of service portion of the contract executed by the appellant. There is no basis for the Department to hold that the services are not input services to the extent of cost of material supplied by the appellant; (2) Since the appellant is a manufacturer of goods as well as a service provider, they are entitled to take the credit of specified duties paid on inputs or ca....
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....it on inputs, capital goods and input services which are used for manufacture of goods or for provision of services is available in a common pool and can be used for payment of excise duty and/or service tax. (c) Reliance is placed on the following decisions :- (i) Pipavav Shipyard Limited vs. Commissioner reported in 2016 (41) S.T.R. 151 (Tri. - Ahmd.) ; (ii) CCE, Coimbatore vs. Lakshmi Technology & Engineering Industries Limited reported in 2011 (23) S.T.R. 265 (Tri. - Chennai); (iii) CCE, Chennai vs. Areva T&D India Ltd. reported in 2011 (23) S.T.R. 33 (Tri. - Chennai) ; (iv) CCE, Salem vs. V. Thangavel & Sons (P) Ltd. reported in 2015 (37) S.T.R. 144 (Tri. - Chennai) ; ....
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....o 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 upto the place of removal ; Credit has been availed by the appellant on commission agent services as well as insurance services. The commission agent services have been used by the appellant for procurement of Turnkey orders from DISCOMS. Since part of such orders are for supply of goods manufactured by the appellant and the other part is for supply of services, such services quality as input service. This view is also suppo....
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....se duty on final products manufactured or service tax on output service rendered. The scheme of Cenvat credit does not require segregation of the credits availed in terms of whether such input/input services or utilized for the manufacture of final products are used for rendering output service. This specific issue has been clarified time and again by CBEC. In the FAQ clarified by DGST it has been mentioned that Cenvat credit may be utilized for payment of service tax on output services in addition to discharging the Central Excise duty liability on finished products. On the question of gross utilization of credit on inputs and input services, CBEC in Circular No. 381/23/2010/862 dated 30/03/2010, has clarified that the Cenvat credits on in....
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....ified excise duty, additional duty of Customs and Service Tax in respect of input service and utilised credit from these sources for the purpose of paying service. Rules permit taking of credit under a common pool and permit the use of the credit from common pool for different purposes and there is no restriction placed to the effect that credit accounts should be maintained for use for manufacture of excisable goods and for use for providing services. In the case of Commissioner of Central Excise, Salem v, Thangavel & sons (P) Ltd. - 2014 (7) 895-CESTAT Chennai - 2015 (37) S.T.R. 144 (Tri. Chennai), the Tribunal held that the respondents are not only the manufacturers of excisable goods, but also the provider of output service and both the....