2019 (2) TMI 1231

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ure of turbo chargers and they are availing cenvat credit on inputs used in manufacture and packing of final products, capital goods and input services. Department during the course of audit of records of the appellant for the period 2012-13 to 2015-16 had noticed that they have availed the cenvat credit of CVD cess on the goods received from M/s Indo Schottle, Pune. Despite that, there was exemption in terms of Notification No. 13/2012 and 14/2012. Accordingly, appellants were proposed to reverse the same. In addition, Department observed that the appellant have also availed cenvat credit of service tax paid on maintenance charges to M/s Madhya Pradesh Audyogik Kendra Vikas Nigam (MPAKVN). The appellant was also observed to have wrongly av....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....products. Still the credit has been denied on a wrong observation holding the impugned amount as the one against the construction services which stands excluded from the definition of the input services. The Order therefore is alleged as erroneous and is accordingly prayed to be set aside. Ld. Counsel has relied upon the following case laws: Mahle Engine Components Pvt Ltd Vs. CGST, CE & ST, Indore 2019 (1) TMI 771-CESTAT New Delhi Honda Motorcycle and Scooter India Pvt Ltd Vs. CGST C. & CE, Final Order No. 53300/2018 dated 02.11.2018 Panasonics Energy India Co. Ltd Vs. CCE & ST, Vadodara-II, 2017-VIL-813-CESTAT-AHM-ST to impressing upon the maintenance charges to be inclusive in the input services. Accordingly the Appeal is praye....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... document thereby forming the part of annual lease rental, to my opinion, falls into the same category as that of annual lease rental. It has been acknowledged rather by the adjudicating authorities below themselves that: "It is an established fact that the industrial land on which noticees factory is set up is integrally connected for carrying out the activities of manufacture of final products by the appellant. The maintenance of said industrial land / area is equally integrally connected with the manufacture of final products. In the absence of service received for lease and maintenance of industrial area, the notice cannot run its factory and thus these services are merely for the manufacture of the final products." Despite the abov....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ry premises of appellant but the simultaneous fact is that such services are charged on the basis of per square meter of business premises occupied by the appellant. Hence, were very much the part of lease/ rent of the impugned premises. The lease/ rent charge are the eligible inputs, so are to my opinion the maintenance charges. I draw my support from the decision of Hon'ble Apex Court in Karnani Properties case as was relied upon by Tribunal Mumbai in the decision reported as 2016 (46) STR 30 wherein it is held that without maintenance of adjoining roads, etc. the business premises cannot function and without maintenance charges lease of business premises cannot continue. Therefore, I am of the opinion that these charges are indirectly re....