2019 (7) TMI 201

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....e the Commissioner of G.S.T. and Central Excise (Appeals-II), Chennai. After considering the plea of the assessee, the First Appellate Authority vide the impugned Order Nos. 563 and 564/2018 (CTA-II) dated 10.12.2018 rejected the appeals. Aggrieved, the assessee has preferred the above appeals. 3. Today when the matter was taken up for hearing, Shri. Karthik Sundaram, Ld. Advocate, appeared on behalf of the assessee and Shri. B. Balamurugan, Ld. AR, appeared on behalf of the Revenue. 4.1 Shri. Karthik Sundaram, Ld. Advocate, contended that the issue involved in this case is no more res integra as the same has been considered and allowed in favour of the taxpayer in a number of cases by various judicial fora. He also relied on the following decisions to buttress his arguments : (i) M/s. Maruti Suzuki Ltd. Vs. C.C.E. - 2009 (240) E.L.T. 641 (S.C.); (ii) C.C.E. Vs. M/s. Ultratech Cement Ltd. - 2010 (20) S.T.R. 577 (Bom.); (iii) M/s. Integra Software Services Pvt. Ltd. Vs. C.C.E. - 2017 (48) S.T.R. 137 (Tri. - Chennai); (iv) M/s. Lenovo India Pvt. Ltd. Vs. C.C.E. - 2017 (52) S.T.R. 63 (Tri. - Chennai); (v) C.C.E., Coimbatore Vs. M/s. P....

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....er for common disposal. 8.1 In respect of Room/Laundry Service, the Ahmedabad Bench of the Tribunal in the case of M/s. One Advertising & Communication Services Ltd. (supra) has held as under : "4. I heard both the sides and also considered the various records. As regards Catering service, the authorized representative submitted that the Catering service was taken for the purpose of hosting a party for the client for business promotion and therefore credit has been taken correctly. However, the ld. A.R. pointed out that this point was not raised before both the lower authorities and was not mentioned in the appeal also. It was explained to authorized representative that in such event, an application for considering the additional grounds is required to be filed. The ld. authorized representative submitted that since the amount involved is small, he would not like to increase the additional paper work and he is willing to accept that CENVAT Credit is not admissible in respect services received and involved in the present appeal. As regards Pathological Laboratory services, it was submitted that the appellant has about 150 employees and the Company conducted blood-test an....

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....acturing and exporting coffee powder. We find that the Larger Bench of the Tribunal in the case of CCE, Mumbai-V v. M/s. GTC Industries Ltd. - 2008-TIOL-1634-CESTAT-MUM-LB = 2008 (12) S.T.R. 468 (Tri.-LB) has held that all the elements of costs which are required to be included in the cost of final product has to be considered. We may reproduce the said paragraph. "4.1 Cost of Production : Cost of production shall consist of material consumed, direct wages and salaries, direct expenses, works overheads, quality control cost, research and development cost, packing cost, administrative overheads relating to production. To arrive at cost of production of goods dispatched for captive consumption, adjustment for stock of work-in-process, finished goods, recoveries for sales of scrap, wastage, etc., shall be made." 6.2 We also find that the said decision of the Larger Bench was followed in Final Order No. 1290/2008, dated 18-11-2008 [2009 (13) S.T.R. 616 (Tri.) = 2009 (236) E.L.T. 145 (Tri.)] wherein this Bench held as under. "5. On a very careful consideration of the issue, I find that CAS-4 has considered all the services such as medical benefit, subsidized f....

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.... decision in the cases of Keltech Energies Ltd. v. CCE, Mangalore [2008 (10) S.T.R. 280 (Tri. - Bang.)] and Stanzen Toyotetsu India Pvt. Ltd. v. CCE, Bangalore-III [2009 (14) S.T.R. 316 (Tri. - Bang.)]. On a specific query from the Bench, both sides submit that there are no contrary decision on the issue. In the above two cases, I find that the issue of eligibility of Cenvat credit of service tax paid on telephone service as well as Rent-a-cab service has been settled in favour of the assessee. As regards the professional charges paid by the assessee to the Chartered Accountants, it can be directly related to the business." 8.4.1 With regard to Legal Expenses, the Co-ordinate Bench of the Tribunal in the case of Commissioner of Central Excise, Noida Vs. M/s. HCL Technologies Ltd. reported in 2016 (42) S.T.R. 48 (Tri. - Del.) has after considering various decisions, held as under : "6. As regards the second appeal, I find that services on which the credit has been allowed are medical group insurance, legal consultancy services, outdoor catering services and subscription for international taxation. All the said services stand covered by decisions of the Courts including v....