TaxTMI 
TaxTMI 
2019 (3) TMI 780
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....in the factory of production during the period from December 2013 and June 2014. The department was of the view that the input services are not eligible for credit as they were not used directly or indirectly in or in relation to the manufacturing activity and it did not qualify as input service as per the definition of Rule 2(l) of CCR, 2004. Show Cause Notice dated 26.7.2016 was issued proposing to disallow the credit of Rs. 4,71,391/- along with interest and also for imposing penalty of Rs. 2,35,696/- under Rule 15(2) of CCR r/w proviso to Section 11AC(1)(c) of the Central Excise Act, 1944. After due process of law, the original authority confirmed the demand, interest and imposed penalty. In appeal, Commissioner (Appeals) set aside the ....
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....ddress of the marketing office at Chennai and it was not possible for the ISD at Telangana to avail credit and distribute the same. Hence the manufacturing unit at Chennai, the appellant herein, has availed the credit. 2.2 The second issue is with regard to the service tax paid on the rent for the premises outside the factory wherein the capital goods were stored for a short period. He submitted that the capital goods which were stored therein was kept till it was brought into the factory. That therefore since the capital goods were later used for the manufacturing activity, the credit availed for the service tax paid on rent incurred for storing the capital goods is eligible. 2.3 The ld. counsel also argued on the ground of limitation. H....
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....Rule 7 of CCR, 2004. Thus, the availment of credit by the appellant which is a manufacturing unit in Chennai is against the provisions of law. 3.2 The second issue is with regard to the credit availed on the service tax paid on rent for the premises in which it is contended that the capital goods were stored. The ld. AR submitted that an agreement was entered by the appellant with M/s. Wayne Burt Petrochemicals. This agreement is a job work agreement wherein Wayne Burt has agreed to manufacture certain types of cylinders for the appellant. The premises was occupied by Wayne Burt as a job worker. The capital goods were also used by Wayne Burt for manufacturing activity on job work basis. He adverted to para 2.1 to 2.4, 5.1, 7.1 and 7.2 of t....
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....ble to avail the credit at ISD unit at Telangana. I do not find much merit in this contention raised by the appellant. The convenience of ISD registration is to have a single unit which can avail the credit and thereafter make pro-rata distribution to other units. The invoices ought to have been raised in the name of the ISD unit. Thus there is a procedural lapse in availing the credit. However, the credit as such cannot be said to be not available to the appellant. 5.1 With regard to the second issue of credit availed of service tax on rent paid for premises wherein the capital goods are contended to have been stored, the argument of the ld. counsel for the appellant is that since subsequently the capital goods were used in the factory of....
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....ailed by them in their returns. The second reason for reaching the conclusion that extended period is invocable is that the appellant has given contradictory versions with regard to the storage of capital goods outside the factory. The appellant has always contended that they had stored the capital goods outside the factory till it was brought into the factory and therefore are eligible for credit. I do not find any contradictory version by the appellant for which reason also the conclusion arrived by the adjudicating authority cannot sustain. In the impugned order, the Commissioner (Appeals) has not discussed any facts so as to uphold the findings of the adjudicating authority with regard to invocation of extended period. Indeed it is held....