TaxTMI 
TaxTMI 
2019 (5) TMI 251
X X X X Extracts X X X X
X X X X Extracts X X X X
....passed the impugned order allowing the credit on Security Agency Services, Terminal Charges, Storage and Warehousing Charges. The credit in respect of Event Management Services, Housekeeping, Renting of Immovable Property Services, Business Auxiliary Services, Brokerage Commission, Clearing and Forwarding Agency Services, Auctioneering Services, Cleaning Services and Supply of Man-power Services were disallowed. Hence this appeal. 2.0 On behalf of the appellant, the learned counsel Ms. S. Vishnu Priya appeared and argued the matter. She submitted that the period involved is from Jan.'09 to Jan.'10, which is prior to the amendment of the definition of "Input Services". Prior to 01.04.2011, the definition was wide enough and it included almost all the services which were carried out for the purpose of business of manufacture. 2.1 In respect of Event Management Service, she submitted that the said services were used for promoting the sale of their finished product, namely, Coca-Cola beverages. A film actor Shri Vijay was hired for an event, which was conducted for promotion of the finished product. The payment to the actor as well as to the service provider, who conducted the ev....
X X X X Extracts X X X X
X X X X Extracts X X X X
....i Systems Ltd., Vs Commissioner of Central Excise, Chennai-III vide Final Order No.42775/2017, dated 02.11.2017. 2.5 With regard to disallowance of credit on Brokerage Commission, the learned counsel submitted that the appellant had engaged real estate brokers to find out the suitable marketing office to carry out their business activity. The commission paid to these real estate brokers has suffered service tax on the part of the appellants and, therefore, they have readily availed the credit. She relied upon the decision in the case of M/s. Birla Commission Corporation Ltd. Vs Commissioner of Central Excise, Lucknow reported in 2013 (288) E.L.T.427 (Tri.-Del.). 2.6 With regard to credit availed on Clearing and Forwarding Agency Services, she submitted that the Commissioner (Appeals) has disallowed the credit stating that the Clearing and Forwarding Agency Services is done upto the buyers premises and, therefore, not eligible for credit. It is her case that the place of removal is buyer's premises as the transactions are on F.O.R. basis. That the Tribunal in a similar case has remanded the matter to the adjudicating authority to ascertain as to what is the place of removal. S....
X X X X Extracts X X X X
X X X X Extracts X X X X
....d Authorised Representative by submitting that the said services have been availed for marketing office of the appellant and, therefore, being outside the factory, the credit is not eligible. 3.4 The Business Auxiliary Service is not eligible for credit. Since these are for maintaining of fire extinguishers, etc., which is not connected with the activity of manufacture. 3.5 Brokerage Commission paid by the appellant is for real estate brokers for finding out premises for their marketing office. As these are outside the factory are not eligible for credit. 3.6 With regard to Clearing and Forwarding Agency, the learned Authorised Representative submitted that the appellant is eligible for Outward Transportation upto the place of removal only. In the present case, they contend that the place of removal is the buyer's premises. This has to be verified. The matter, therefore, requires to be remanded to the adjudicating authority. 3.7 With regard to Cleaning Services as well as Man-power Recruitment Services, the learned Authorised Representative submits that these services have no nexus with the manufacturing activity and, therefore, no eligible for credit. 4. Heard both ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....be disputed that the appellant being a factory has to maintain these equipments for ensuring the safety of the premises as well as for the employees working therein. I hold that the disallowance of credit on BAS is unjustified and credit is eligible. 5.4 The learned counsel for appellant has submitted that the Real Estate brokers were engaged to find out suitable place to carry out a marketing office. Such officers are essential for marketing of finished products. The service tax paid on Brokerage Commission for real estate brokers is eligible for credit. 5.5 The appellant has availed credit on Clearing and Forwarding Agency Services. The said credit has been disallowed stating that the dealer has availed credit of service tax paid on freight charges upto the supplier's premises. The Hon'ble Apex Court in the case of M/s. Ultratech Cements Ltd., reported in 2018 (2) TMI 117 (S.C.) has held that after 04.04.2008, the credit is eligible only upto place of removal. Subsequently, Circular No.1065/4/2018-CX., was issued by the Board on 8th June, 2018, wherein, the decision in the case of CCE Vs M/s. Ispat Industries Ltd., reported in 2015 (319) E.L.T.221 (S.C.) and CCE Vs M/s. Roo....