TaxTMI 
TaxTMI 
TaxTMI 
2019 (6) TMI 67
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...., from the definition and therefore, these input services do not qualify as input services under the definition of "input service" as per Rule 2(l) of Cenvat Credit Rules (in short CCR), 2004 as amended. Accordingly a show-cause notice dated 31.05.2017 was issued towards ineligible input services and inadmissible credit of Rs. 3,13,127/- (Rupees Three Lakhs Thirteen Thousand One Hundred and Twenty Seven only) which was availed and utilized by them in contravention of Rule 3 and 4 of Cenvat Credit Rules, 2004 under the provisions of Rule 14(1)(ii) of Cenvat Credit Rules, 2004 read with Section 11A of Central Excise Act (the Act), 1944 with a proposal to impose penalty under Rule 15(2) of Cenvat Credit Rules, 2004 and Section 11AC of the Act and interest. After following the due process, the original authority vide its order dated 10.05.2018 issued on 18.05.2018 confirmed the demand of Rs. 3,13,127/- (Rupees Three Lakhs Thirteen Thousand One Hundred and Twenty Seven only) along with interest and imposition of penalty of equal amount under Rule 15(2) of Cenvat Credit Rules 2004 read with Section 11AC (i)(c) of Central Excise Act, 1944. Aggrieved by the said order, appellant filed appe....
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....e following decisions: a. Ganesan Builders Limited Vs. CST, - 2019 (20) GSTL 39 (Mad.) b. Hydus Technologies India Pvt. Ltd. Vs. CCE - 2017 (52) STR 186 (Tri.-Hyd.) c. Jaypee Sidhi Cement Plant Vs. CCE - 2016 (46) STR 413 (Tri.-Del.) d. Jaypee Sidhi Cement Plant Vs. CCE - 2015 (37) STR 379 (Tri.-Del.) e. ACG Associated Capsules P. Ltd. Vs. CCE - 2019 (20) GSTL 346 (Bom.) 4. On the other hand the learned AR defended the impugned order and submitted that after the amendment in the definition of 'input service' certain services have been specifically excluded by Clause (C) of Rule 2(l) of Cenvat Credit Rules 2004 whereby Life Insurance and Health Insurance have been specifically excluded. She further submitted that the cenvat credit cannot be claimed on Health and Life Insurance Service even if it is under a statutory requirement because the same has been specifically excluded by the Legislature. She further submitted that the decision of the Ganesan Builders Limited relied upon by the appellant is not applicable in the facts and circumstances of this case because the said decision was mainly for the construction workers who are working on the sites and the assessee in that....
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....rvice listed under clause (b) of Section 66E of the Finance Act (hereinafter referred as specified services insofar as they are used for - (a) construction or execution of works contract of a building or a civil structure or a part thereof; or (b) laying of foundation or making of structures for support of capital goods, except for the provision of one or more of the specified services; or (B) Services "provided by way of renting of a motor vehicle, insofar as they relate to a motor vehicle which is not a capital goods; or (BA) Service of general insurance business, servicing, repair and maintenance insofar as they relate to a motor vehicle which is not a capital goods, except when used by (a) a manufacturer of a motor vehicle in respect of a motor vehicle manufactured by such person; or (b) an insurance company in respect of a motor vehicle insured or reinsured by such person; or (C) such as those provided in relation to outdoor catering, beauty treatment, health services, cosmetic and plastic surgery, membership of a club, health and fitness centre, life insurance, health insurance and travel benefits extended to employees on vacation such as Leave or Home Travel Co....
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....n fact the need for exclusion would arise only when the services are otherwise covered by the definition. The Legislature in its wisdom has excluded certain services from the availment of cenvat credit w.e.f. 01.04.2011 when such services are otherwise covered by the main definition clause of the input service. The Larger Bench in the case of Wipro Ltd. has considered the exclusion clause (C) provided in the definition of 'input service' under Rule 2(l) and has observed in para 7.2 as under: "7.2 It is well settled that the legislative intent cannot be defeated by adopting interpretation which is clearly against such intent. Further, we find that from the Budget Speech of the Finance Minister dated 28-2-2011 wherein the Hon7ble Minister has categorically stated that due to complexities there has been many legal issues on the availability of credit on a number of inputs or input services which are being rationalized by laying down clear definition so that the scope of inputs and input services that are eligible and those that are not, is clear. Further, we also find from the clarification issued by the Joint Secretary (TRU) explaining the intention of the Legislature for the chang....