TaxTMI 
TaxTMI 
TaxTMI 
2018 (7) TMI 422
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....asala under the brand name 'Rajnigandha'. They have their head office at Delhi and factories are at various places including Noida. The present dispute is in respect of their factory at Noida manufacturing panmasala in retail pouches of various MRPs as also in 100 gram tin packs. The period of dispute is from April 2008 to December, 2012. In respect of the panmasala manufactured in retail pouches of various M.R.Ps, the duty liability is being discharged by the appellant under section 3A of the Central Excise Act, 1944 read with Panmasala Packing Machine (capacity determination and collection of duty) Rules, 2008 (hereinafter referred to PMPM Rules, 2008). In respect of the panmasala in 100 Gram tin packs, the appellant discharged duty liabi....
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.... for advertisement and sales promotion of the "Rajni Gandha" panmasala sold in 100 gram tin packs. For this service received, the appellant have availed the Cenvat credit as the service of advertisement and sales promotion is covered by the definition of 'input service' in terms of provisions of Rule 2 (l) of Cenvat Credit Rules. Even after amendment to the definition of "input service" w.e.f. 01/07/2012, this service is covered by the definition of "Input Service". The Department's case against the appellant is that the advertisement and sales promotion service received by the appellant, even if in respect of sales promotion of Rajni Gandha Pansasala in 100 Gram tin packs, has also promoted the sale of the Rajni Gandha Panmasala sold in th....
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....d as such, there is no justification for denying the Cenvat credit the proportion to the volume of clearance of panmasala in retail packs, that secondly, in terms of Rule 15 of PMPM Rules, 2008 the prohibition is only on taking of Cenvat credit of duty paid on any inputs/capital goods or input services used for manufacture of notified goods, that the advertisement service have not been used for manufacture of panmasala, as they have been used only in relation to manufacturing business, that for this reason also, there is no justification for denying proportionate Cenvat credit. He specifically draws our attention to the definition of input service available under rule 2(l) of Cenvat Credt Rules and submits that the said definition is wide e....
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....onsidered the submissions from both the sides and perused the records. 7. The undisputed facts are that the appellant manufacture panmasala in retail pouches of different MRPs in respect of which duly liability is being discharged under section 3A of the Central Excise Act, 1944 read with PMPM Rules, 2008 and besides this, they also manufacture panmasala in 100 grms tin packs, in respect of which duty liability is discharged under section 3A and about this aspect also there is no dispute. There is also no dispute that in respect of the panmasala manufactured and cleared in 100 gram tins, the appellants would be eligible for cenvat credit of the inputs and input services. There is no dispute that the appellant have paid entire duty on the p....
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....l) ......... 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, RULE 15. Cenvat credit not admissible. - Notwithstanding anything contained in these rules, no CENVAT credit of duty paid on any input, capital goods or input services used for manufacture of the notified goods shall be taken under the CENVAT Credit Rules, 2004 and the full amount of duty payable would be paid in cash only. 8. From a perusal of this Rule 15 of PMPM Rules, 2008, it is clear that it is a non-obstante provision prohibiting taking of Cenvat credit of any Central Excise Duty paid on any input and capital goods or service tax paid on any input ser....