TaxTMI 
TaxTMI 
2017 (7) TMI 1267
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....in, are the manufacturers of parts of washing machine, falling under Chapter sub-heading 8450 90 10 of the First Schedule to the Central Excise Tariff Act, 1985. On 24-1-2008, the 2nd respondent availed Cenvat credit of Service Tax of Rs. 25,75,000/- distributed by their Head Office, at Mumbai, as Input Service Distributor, vide Bill No. 15/2007-08, dated 13-12-2007. The said credit arose on account of service received from M/s. Ambit Corporate Finance Ltd., Mumbai, for assisting sale of 5 units of M/s. Bright Brothers Ltd., at various places. M/s. Ambit Corporate Finance Ltd., is registered at Mumbai, for providing Management Consultancy Services/Business Support Service. 3. Contending inter alia that as the above service received by....
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....aving nexus to the business of the 2nd respondent. (iii) The first appellate authority has not ruled out the relevancy of service in the fitness of the circumstances of the case. (iv) As it is not ruled out, it cannot be said that the service was irrelevant. (v) In view of the error of law, committed by Learned Commissioner (Appeals), appeal is allowed." 5. As against the above said order, instant civil miscellaneous appeal has been filed, on the following substantial questions of law, - a) "(i) Whether in terms of [Rule] 2(1) of CCR, 2004, as it existed during the material period, the CESTAT is correct in holding that the credit availed on the services in connection with selling ....
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.... (ii) Used by the manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products and clearance of final products from the place of removal and includes services used in relation to setting up, modernization, renovation or repairs of a factory, premises of provider of output service or an office relating to such factory or premises, advertisement or sales promotion, market research, storage up to the place of removal, procurement of inputs, activities relating to business, such as accounting, auditing, financing, recruitment and quality control, coaching and training, computer networking, credit rating, share registry and security, inward transportation of inputs or capital goods and outward transp....
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....ssed to the registered office of the 2nd respondent the following points emerge - (i) Ambit will identify potential buyers to enable the transaction. (ii) Ambit will approach potential buyers and provide interested parties with additional relevant comprehensive information based on the discussions with the proposed buyers. (iii) Ambit will hold preliminary meeting and discussions with the proposed buyers. (iv) Ambit will act as a primary point of contract with the potential buyers and the bankers, lawyers, consultants, etc. (v) Ambit will advise and assist the group in negotiations during discussions with potential buyers. (vi) Ambit will assist the group in finalizing the Memorandum of Understandin....
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....dit of service, on account of service received from M/s. Ambit Corporate Finance Ltd., Mumbai, for assisting sale of 5 units of M/s. Bright Brothers Ltd., at various places, perusal of the impugned order does not contain detailed reasons, by the Tribunal, excepting to state that the Commissioner of Central Excise (Appeals), has not ruled out the relevancy of service and in the fitness of the circumstances of the case, and once that is not ruled out, it cannot be said that the service was irrelevant. 11. Going through the materials on record, we are of the view that the order of the Tribunal is a non-speaking order, with reference to what is claimed by the 2nd respondent and denied by the Department. At this juncture, we deem it fit to....
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....ommr. of Central Excise, Bangalore-II v. Fitwel Tools Forgings (P) Ltd., reported in 2010 (256) E.L.T. 212 (Kar.), a Hon'ble Division Bench of Karnataka High Court, at Paragraph 5, held as follows : "After careful perusal of the order impugned, it is manifest on the face of the order that the Tribunal has committed a grave error in passing the order impugned without assigning any valid reasons and without any discussion. By merely following the order passed in similar matters, it has proceeded to pass the impugned order, allowing the appeal filed by the respondent. Hence, we are of the opinion that the impugned order is cryptic in nature and such a non-speaking order cannot be sustained." 12. Needless to state that CESTAT is the fina....