TaxTMI 
TaxTMI 
TaxTMI 
2018 (7) TMI 769
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.... 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 Consultancy services, Insurance for finished goods ....
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....s 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 Labour Law and Employee Relations Recruitment 20 Assistance in internal plan formulation and analysis Financial Services Financing 21 Assistance in internal financing reviews Financial Services F....
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....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 order and on merits, we have examined the issue and we found that these services are in inclusive part of definition on input service in terms of Rule 2(l) of Cenvat Credit Rules, 2004, therefore, we hold that assessee is entitled to avail Cenvat credit of Rs. 2,09,34,959/- and Rs. 51,94,595/- (b) Business Exhibition s....
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....ound 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 entitled to avail Cenvat credit on the said service. (e) Insurance of employees family members : The Revenue is in appeal for allowing of Cenvat credit of Rs. 3,17,791/- pertaining to insurance of family members of employees of the assessee for that they are not entitled for Cenvat credit. The contention of the assessee is that in ter....
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.... 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 neither subjected to Central Excise duty nor to Service tax. In this regard, the Commissioner referred to a C.B.E. & C. Circular, dated 4-1-2008. The Commissioner also held that the Service tax paid on lease rentals is not covered under the "input service" as the same is not remotely connected to the manufacturing activity and that the nexus th....