2019 (3) TMI 1510

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....ng and Installation Service, Maintenance and Repair Service, Business Auxiliary Service, Intellectual Property Service and Renting of Immovable Property Service. They are registered with the Department. They are also engaged in manufacturing complex fertilizers, nitrogenous fertilizers which are exempt from payment of excise duty. During the course of audit of accounts, it was noticed that the appellant had taken input service credit in the month of March 2010 and April 2010 to September 2010 on the strength of invoices issued by M/s. Stewart & Mackertich Wealth Management Limited, Mumbai for services provided in connection with private placement of shares of Technip India Ltd. on account of termination of Joint Venture. It was the view of ....

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....he nature of oil refining industry, petrochemical industry, chemical industry, fertilizer industry etc. including other industries, the parties may agree upon. The appellant company was holding the investment in Technip India for almost 12 years and then shares were disposed of during the year 2009 - 10 on account of business expediency. For sale of these shares, the appellant had availed the services of M/s. Stewart & Mackertich Wealth Management Limited, Mumbai and SMIF Capital Markets Limited, Kolkata. Service tax was paid on such services availed from these agencies on which the appellant had taken CENVAT credit. Since these services were used for raising capital / funds, they qualify as input services. 2.2 Appellants have utilized the....

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.... is related to the business carried on by an undertaking would be covered by this definition. So also the case with 'financing' which very well accommodates the activity of transfer of shares as the resultant sale proceeds constitutes only 'financing' for the business activities of the appellants. 2.4 While the adjudicating authority has admitted the fact that as per Rule 2(l) of the CCR 2004, the term "Business" has got a wider import and could not be applied in a narrow sense, he has however taken a contrary view that disposal of investments by the appellants will not fit into the definition of business which is not in order. The adjudicating authority without considering the detailed submissions made by the appellants in their proper pe....

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....herefore, they are not eligible to avail CENVAT credit of inputs / input services. In the present case, the appellants have availed CENVAT credit on input service contending that these were used for providing output services. Though it is pleaded by the appellant that these impugned services were used for raising capital, it can be seen that the appellant has used the capital received from sale of shares for clearing the debts. Upon such payment of debts, the appellant was able to obtain a supply arrangement with IOCL for continuous supply of raw materials viz. raw naptha and furnace oil to the fertilizer factory. Thus, the sale of shares were used for manufacturing activity and therefore not eligible for credit. The input services do not h....