TaxTMI 
TaxTMI 
TaxTMI 
2017 (6) TMI 890
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....peals are as under: Appeal No. E/26802/2013-SM E/26803/2013-SM Period of Dispute November 2008 - September 2009 March 2010 - October 2010 OIA No. 83-84/2013 dated 7.3.201 Total Ineligible CENVT Credit Rs.7,36,041/- Rs.6,69,593/- Non-compliance with Rule 2(l) Rs.1,81,758/- Rs.1,46,749/- On the basis of Debit Notes Rs.5,54,283/- Rs.5,17,305/- Lack of documentary proof - Rs.5,539/- Interest As per Section 11AB of the Central Excise Act, 1944 Penalty Under Section 11AC of the Central Excise Act, 1944 read with Rule 15(2) of CENVT Credit Rules, 2004 Rs.3,00,000/- under Rule 15(1) of the CENVAT Credit Rules, 2004 2. Briefly the facts of the present case are that appellants are manufacturing various chemic....
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....f both the show-cause notices by passing the Order-in-Original. In the Order-in-Original, the original authority has allowed the credit on water testing charges, repairs and maintenance service, telephone charges, cost audit charges, security services, CHA services, auditing charges and manpower supply. However, the original authority disallowed the credit on bank charges, internet and broad brand charges, mobile telephone charges, consultancy charges towards pay roll of employees, consultancy charges towards VAT/VAT audit, AMC on industrial fire and safety equipment, AMC on video conferencing equipment, consultancy charges (insurance claim consultant), xerox charges, software (VAT / Anti-Virus Packages / Saral Pay Pack), input service cred....
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....der, membership fees, writer relocation (real estate consultant) and also input service credit availed on the bills received for the services (based on debit notes) are not allowed. Further, the Commissioner (A) has not allowed the CENVAT credit for Rs. 5,539/- on account of lack of documentary evidence. Aggrieved by the said order, the appellant has filed the present appeal. 3. Heard both the parties and perused the records. 4. The learned counsel for the appellant submitted that the impugned order is not sustainable in law as the same has been passed contrary to the statutory provisions and binding judicial precedents. He further submitted that the Commissioner (A) has not given any reasons for denial of CENVAT credit on all those servi....
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....smooth functioning of the business as it helps in communicating with other units and clients, consequently increasing the productivity of the organization and hence the maintenance charges incurred on video conferencing equipment are used in the furtherance of the business. Xerox charges The said service is used for business related documents which contributes to the manufacturing activity of the Appellant. Software VAT/Antivirus/Saral Pay Packages The appellant is a very big concern and its accounts are computerized by well-built software, hence for effective performance of the computer operations, having such software is a necessity. AMC for computerized attendance records The maintenance charges incurred on the computer equipment w....
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....(f) of the CENVAT Credit Rules 2004. Input credit availed without documentary proof These services are related to the consultancy services obtained by a local Chartered Accountant towards the Central Sales Act with regard to the uploading and submissions of the C-forms to the department which are related to the business activity of the appellant. 4.1 Further, the learned counsel has relied upon the following decisions to show that all these services have been held to be input services by various decision given by the Tribunal and the High Court. * Indian Chamber of Commerce v. Commissioner of Income Tax, West Bengal II, Calcutta (1976) 1 SCR 830 * State of Punjab v. British India Corporation Ltd. 1963 AIR 1459 * Adani Port and Speci....
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....ction with the manufacturing and business activity of the organization and the said services include central purchase function for procurement of goods, promotion/marketing of product and other business, etc. The services are directly used for the promotion of the products manufactured and hence, qualify as input service. The learned counsel also placed the copies of the agreement on record and further submitted that these debit notes fulfill all the conditions as required under Rule 4A of the Service Tax Rules and the same is a valid document on which the credit can be availed. In support of this submission, he relied on the decision of M/s. SRF Ltd. Vs. CCE reported in 2015-TIOL-2241-CESTAT-DEL. and Shivam Exports Vs. CCE reported in 2016....