TaxTMI 
TaxTMI 
TaxTMI 
2019 (8) TMI 525
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....sed equal penalty in terms of Section 11AC of Central Excise Act read with Rule 15(2). The Commissioner (Appeals) has dropped the demand of Rs. 31,39,893/- (Rupees Thirty One Lakhs Thirty Nine Thousand Eight Hundred and Ninety Three only) along with interest and penalty. In the present appeal, appellant has only challenged the denial of cenvat credit of Rs. 6,83,245/- (Rupees Six Lakhs Eighty Three Thousand Two Hundred and Forty Five only). Briefly the facts of the present case are that the appellants are engaged in the manufacture of flooring leveling compounds, tile adhesive and grouts, water proof compounds, etc. and are availing the facility of cenvat credit under the provisions of Cenvat Credit Rules, 2004. During the course of audit, ....
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....usand Four Hundred and Eighty only) to Rs. 8,92,587/- (Rupees Eight Lakhs Ninety Two Thousand Five Hundred and Eighty Seven only) as per the table given below: Sl. No. Nature of service availed Location Tax amount (Rs.) 1 Accounting Services Depot 9,549 2 Auditing Service Depot 38,799 3 Renting of Immovable Property Services Depot 39,310 4 Telecommunication services-depot Depot 8,806 5 GTA services to customers Factory 2,09,342 6 GTA services - Factory to depot Factory 2,48,870 7 Transit insurance-Factory to Depot Factory 12,360 8 Clearing & Forwarding services Factory 93,191 9 Intellectual Property Rights Services Factory 2,32,360 Total credit disallowed 8,92,587 Aggrieved by the s....
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....sioner (Appeals) has denied the cenvat credit relating to accounting services for the depots, audit services for the depots and renting of immovable property services to various depots taken on rent and telecommunication services pertaining to depots totally amounting to Rs. 96,464/- (Rupees Ninety Six Thousand Four Hundred and Sixty Four only). The learned counsel further submitted that the service tax credit on input services pertaining to depot has wrongly been denied by travelling beyond the show-cause notice. He further submitted that Order-in-Appeal has travelled beyond the show-cause notice and Order-in-Original with regard to input credit on services pertaining to depot. He referred to para 9 of the Order-in-Appeal wherein the Commi....
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....vat credit on GTA services from factory to depot amounting to Rs. 2,48,870/- (Rupees Two Lakhs Forty Eight Thousand Eight Hundred and Seventy only) is not sustainable in law because the said services were used for removal of goods from the factory to depot for sale at depot in such cases the place of removal of goods is depot and transportation services up to the place of removal are covered under the inclusive part of the definition and the same will qualify as 'input service'. 3.2. As far as denial of credit on Transit Insurance factory to depot amounting to Rs. 12,360/- (Rupees Twelve Thousand Three Hundred and Sixty only), the learned counsel submitted that the said services are used for removal of goods from the factory to depot for s....
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....s in view of the judgment of the Apex Court in the case of Ultratech Cement and has also written the letter to the Department to adjust the said amount against the advance deposit made by them. He further submitted that the appellant has also paid the interest of Rs. 2,20,950/- (Rupees Two Lakhs Twenty Thousand Nine Hundred and Fifty only) on this amount. 5. After considering the submissions of both the parties and perusal of the material on record, I find that the denial of cenvat credit on input services availed at the depot viz. accounting services, audit services, renting of immovable property and telecommunication services amounting to Rs. 96,464/- (Rupees Ninety Six Thousand Four Hundred and Sixty Four only) is not sustainable in law....
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.... inputs, exporting finished goods outside India, therefore these services are relating to procurement of inputs and transportation of goods up to the place of removal and are covered under the inclusive part of the definition of 'input service' and therefore the same is qualify as 'input service'. With regard to denial of cenvat credit on Intellectual Property Right is concerned, I find that the appellant pays royalty to the parent companies Ardex UK, Ardex-Anlagen and Ardex-Australia and the same is directly related to the manufacturing process of final products. Hence the credit relating to the Intellectual Property Right Service is eligible. Further I find that in the case of Century Plyboards (I) Ltd. Vs. CCE, Kolkata VII - 2013 (31) ST....