AI Drafter 
TaxTMI 
TaxTMI 
2018 (7) TMI 769
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.... to the appellant for various period to deny Cenvat credit on the services namely, Management Consultancy services, Business Exhibition services, Management Consultancy and Tax Consultancy services, Insurance for finished goods and Inputs service, Insurance of employees and their family members, Lease of cars, Architecture and Construction services relating to setting up of factory, Training, Pandal and Shamiana services etc. For the period up to March 2012, Cenvat credit of Management Consultancy service, Business Exhibition services, Management Consultancy and Tax Consultancy services, Insurance for Finished goods and Inputs service, Insurance of employees' Family Members and Training services were allowed to the assessee but for the services namely Lease of cars, Architecture and Construction services relating to setting up of factory were denied. For the period post March 2012 till March 2015, Cenvat credit is sought to be denied on Management and Tax Consultancy service and Training service. Against the adjudication order, both sides are in appeal before us. Revenue is in appeal for allowing Cenvat credit for Business Exhibition services, Management Consultancy and Tax Consult....
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.... Advice on cost analysis Accounting and Administration Accounting 12 Advice and assistance in the design and installation of cost systems and analysis results and comparison for the use of individual operations Accounting and Administration Accounting 13 Assistance in training MIS Personnel Management Information Systems Coaching and Training 14 Consultation regarding the implementation and maintenance of computer programs and systems Management Information Systems Computer Networking 15 Running of data centre and 5 centralized order processing and the general ledger system Management Information Systems Computer Networking 16 Establishment of human resource policies. Labour Law and Employee Relations Recruitment and Quality Control 17 Assistance in the expansion or restructuring of the organization Labour Law and Employee Relations Recruitment and Quality Control 18 Development of incentive, retirement and other fringe benefit programs Labour Law and Employee Relations Recruitment and Accounting 19 Implementation of an executive development program to secure availability of executives ....
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.... a mark-up of 5% on annual basis. Thus, it can be summarized that Avery Dennison Hong Kong BV is providing key assistance to the Noticee with regard to the manufacturing activities being carried out. I find that many of the services received are in the nature of accounting financing, quality control etc. which are specifically included in the definition of input services under activities related to business. Noticee is receiving services of Management Consultancy and has contended that these services are received by them for increasing the efficiency of the business, manufacturing and other aspects relating the business of the assessee. I find that in Commissioner of C. Ex., Hyderabad-IV vs. Deloitte Tax Services India Pvt. Limited - 2008 (11) STR 266 (Tri. Bang.) the Tribunal has held that professional consultancy services would come under the definition of input services and the credit on the same should be allowed. Therefore, I hold that these services are input services under activities relating to business, finance, audit, accounts and quality control, Cenvat credit on the aforesaid services cannot be denied." We do agree with the adjudicating authority in the earlier....
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.... in nature and the same form inclusive part of definition of input service in terms of Rule 2(l) of Cenvat Credit Rules, 2004. Therefore, we allow Cenvat credit of Rs. 2,29,288/- to the assessee. (d) Insurance for finished goods and Inputs : Cenvat credit sought to be denied for Insurance for finished goods and inputs on the ground that same is not relating to manufacturing activity of the assessee. We find that assessee has opted insurance for their finished goods and inputs. Until and unless the goods are insured, in the event of any unforeseen accident wherein the finished goods or inputs destroyed before clearance from the place of removal, the said activity is attributable to the manufacturing activity of the assessee. In that circumstance, we hold that assessee is entitled to avail Cenvat credit of Rs. 4,13,645/-. We also take note of the fact that for the period April 2011 to March 2012, in the earlier order, the adjudicating authority allowed Cenvat credit to the assessee but for the subsequent period, the adjudicating authority has been challenging the same without assigning any reason and contradicting the earlier order. In that circumstance also, the assessee is entit....
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....dit and accordingly issued show cause notice for recovery of the credit along with interest and for imposition of penalty. The Commissioner confirmed the demand along with interest and imposed penalty. The Commissioner held as follows. Though the definition of "input service" is wide, it does not cover services that remotely or in a roundabout way contribute to the manufacture of the final products; that any and every connection however remote and indirect it may be is not contemplated by the definition of "input service" and that a line has to be drawn somewhere to avoid undue extension of the phrases 'directly or indirectly' and 'in or in relation to' by adopting a common sense approach. Immovable property is neither service nor goods and, therefore, input credit cannot be taken. Although civil construction work is a taxable service under the Finance Act, 1994, it is basically civil in nature relatable to the immovable property not chargeable to Central Excise duty. Immovable property is neither 'service' nor 'goods'. Input credit is not available to them. Commercial or industrial construction service or works contract service is an input service for immovable property which is n....
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....efore us and the sample of the invoice is extracted hereunder:- As it is evident from the invoice that assessee has paid the service tax, therefore, we hold that assessee is entitled to avail Cenvat credit on training service to the tune of Rs. 19,158/-. (i) Pandal and Shamiana service : Cenvat credit of Rs. 2,522/- has been denied to the assessee that the said activity is not related to manufacturing activity of the assessee. We find that the said service has been availed by the assessee for organising Diwali function in the factory for the employee and in terms of decision of the Hon'ble High Court of Karnataka in the case of Toyota Kirloskar Motor Private Limited vs. CCE - 2011 (24) STR 645 (Kar.) wherein the Hon'ble High Court has held that for any such type of function organised by the assessee, in the factory premises, for enjoyment of the employees, they are entitled to avail Cenvat credit. Therefore, relying on the decision of the Hon'ble High Court of Karnataka we hold that assessee is entitled to avail Cenvat credit of Rs. 2,522/- on the said service. 5. In view of the above observations, the appeals filed by the assessee are allowed. The appeal filed....