2017 (3) TMI 556

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....nufacture of "Open Top Containers". Prior to 18.07.2006, the said assessee held Service Tax Registration in the name and style of M/s.Indian Container Leasing Co.Ltd. for providing output services of 'Banking and Other Financial Services', Management, Maintenance and Repair Services and 'Transport of Goods by Road Services'. After 18.07.2006, the appellant had availed the accumulated Cenvat Credit of input service of the earlier company. The Adjudicating Authority disallowed the Cenvat Credit on input services of Rs. 19,43,243/- and Education Cess of Rs. 38,484/- together with interest and imposed penalty of equal amount of Cenvat Credit. By the impugned order, the Commissioner(Appeals) rejected the appeal filed by the appel....

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.... Services', which were not directly or indirectly related to the manufacturing of the final products. For proper appreciation of the case, the definition of input service under Rule 2(l) of Cenvat Credit Rules, 2004 is reproduced below:- "(l) "input service" means any service, - (i) used by a provider of [output service] for providing an output service; or (ii) used by a manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products and clearance of final products, upto the place of removal" On plain reading of Rule 2(l) of Cenvat Credit Rules, 2004, it is clear that any service used by the manufacturers, whether directly or indirectly, in or in relation to the ma....

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....to the satisfaction of the Deputy Commissioner of Central Excise or, as the case may be, the Assistant Commissioner of Central Excise." Sub Rule (1) of Rule 10 of Cenvat Credit Rules, 2004 provides transfer of Cenvat Credit in a case, if a manufacturer of final product shifts his factory to another site or the factory is or transferred etc., be allowed to transfer the Cenvat Credit lying unutilised in his account to such transferred factory. Sub-Rule (2) of Rule 10 of the Cenvat Credit Rules, 2004 is applicable in the case of a provider of output service transferred the Cenvat Credit lying unutilised in his account to such transferred business. To sum up, sub-Rule (1) of Rule 10 of the Rules would be applicable in the case of transfer of....