TaxTMI 
TaxTMI 
2017 (9) TMI 611
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....l 2010 to December 2010, as it appeared to revenue in the course of audit that the appellant are manufacturer of rectifiers, diodes etc. have taken CENVAT credit of Rs. 7,92,018/- which is not admissible to them and accordingly proposed to disallow the said credit along with proposal to impose penalty under Rule 15(1) of CENVAT Credit Rules, 2004. The show-cause notice was decided vide Order-in-Original dated 18/07/2012. The additional Commissioner was pleased to drop the proposed demand for Rs. 3,14,215/- and was pleased to confirm the disallowance for Rs. 4,77,8,03/-. Further penalty of Rs. 50,000/- was imposed under Rule 15 of CENVAT Credit Rule, 2004. Being aggrieved the appellant preferred appeal before learned Commissioner (Appeals) w....
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.... 116.00 13 Xerox Payment of Xerox Charges for the Xerox Machines installed in factory on Contract basis. 4,911.00 14 Mandap Keeper Monsoon Shed made out of Tarpaulin for during monsoon season for protection of finished goods, raw materials and machines from rain water. 37,926.00 3.1 Annual Gathering Services Rs. 1,910/-: the learned Counsel urges that these expenses were incurred for annual gathering meetings of the staff of the company who are in managerial capacity in the various units of the appellant. Such meetings are useful for exchange of ideas and towards increase of efficiency and profitability. As such these meetings have indirect benefit on the manufacturing activity of the appellant. The learned Commissione....
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....ounting, letter of credit charges, share registry charges, etc. The learned Commissioner have observed that from the documents submitted it does not reveal whether the said charges are for trading in shares or otherwise. He was pleased to allow CENVAT credit on demat services. Further holding that there is no relationship with respect to Manufacture of finished goods. Considering the submissions, I find that no manufacturing activity can take place without the support of finance which is a factor of production. Actually the financing includes bill discounting, letter of credit charges, etc. Accordingly, I hold that these expenses are in relation to the manufacture of final products. Accordingly I hold the same to be allowable. 3.5 Freight ....
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....inery, stock, spare etc. from unforeseen accidents like fire, earthquake etc. The Commissioner (Appeals) disallowed the same observing that the said service was not used in relation to manufacturing of finished goods or carrying on business. I find the said observation of learned Commissioner (Appeals) to be erroneous and not sustainable. Every industry faces the risks of loss due to fire, earthquake etc. and insuring for such abnormal losses, which may result in the total closure of the business of appellant-assessee is an essential business expenditure. Accordingly, I allow the same as an input service under Rule 2 (l) of CENVAT Credit Rules, 2004. 3.8 Labour Charges on Civil Work Rs. 164/- : the learned counsel states that they're n....
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....e Association is essential for the appellant industry to keep track of the industrial news including, improvement in technology, etc. for smooth running of their industry. Accordingly the said expenditure is in relation to the manufacturing of finished products and is held to be allowable under Rule 2(l) of CENVAT Credit Rules, 2004. 3.12 Telecommunication Services Rs. 116/-: the learned Counsel said that they're not contesting this disallowance as it of small amount and reversed the said amount vide entry number 42 dated 06/05/2013. 3.13 Xerox Rs. 4,911/-: the learned Counsel states that these are for payment of the charges for the Xerox machine installed in factory on contract basis. The learned Commissioner states that these servic....