TaxTMI 
TaxTMI 
2021 (11) TMI 11
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....re distributing the service tax credit accumulated with them to their various units under rule 4 A of the Service Tax Rules, 1994 read with Rule 7 of Cenvat Credit Rules, 2004 (CCR, 2004). Department, however, during the verification the records of appellant, observed that during the period from May, 2012 to March, 2013 their corporate office distributed certain amount of credit of service tax paid on air-travel agency service received by them to their units located at different places falling under different Commissionerates on the basis of input service distributor (ISD Challans) issued by heir corporate offices. Accordingly, vide Show Cause Notice No.99/2013 dated 16.05.2013, it was alleged that the appellants have contravened the provis....
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....ch, there is no suppression of any material fact of taking such credit by the appellant. The confirmation of demand as well as the imposition of penalty is therefore, alleged to be wrong. Commissioner (Appeals) is mentioned to have not considered the submissions of the appellants and also the case law quoted by them. The order under challenge is, accordingly, prayed to be set aside and appeal is prayed to be allowed. 4. To rebut these submissions, it is mentioned on behalf of the Department that the definition of input services has undergone change w.e.f. 1st April, 2011, in accordance whereof the prime requisite for any service to be called as input service is that it should be directly or indirectly in relation to manufacture and clearan....
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....oviding an output service; or (ii) used by the manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products and clearance of final products, up to the place of removal, and includes services used in relation to modernization, renovation or repairs of a factory, premises of provider of output service or an office relating to such factory or premises, advertisement or sales promotion, market research, storage up to the place of removal, procurement of inputs, accounting, auditing, financing, recruitment and quality control, coaching and training, computer networking, credit rating, share registry, security, business exhibition, legal services, inward transportation of inputs or capital goods a....
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....efinition, input service could be 'any service' which was used by the manufacturer and / or any output service provider directly or indirectly, in or in relation to manufacture of final products and those which are used for the purpose of clearances of final products upto the place of removal; but not limited to and include the services used in relation to, inter alia, sales promotion; procurement of inputs; quality control; auditing etc. as specified in the inclusive part of the definition. It is important to note that the inclusive part of the definition is as important as the first part of the definition. In fact, the inclusive part of the definition cover such services like accounting, auditing, financing, recruitment, sales promotion; ....
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....ioned in the exclusion portion of the said Rule 2 (l) of CCR. The subject services viz., Air Travel Agency Service and Convention Service are not forming a part of the exclusion clause of the definition under Rule 2 (l) of CCR. For this reason also, I opine, that Air Travel Service being not exclusively excluded but being covered under inclusive part of the definition, is the service eligible for Cenvat Credit. 10. The aforesaid definition also clarifies that though the word "business activity" was removed from the definition of input services at the time of amendment but still they were made eligible for Cenvat Credit of Service Tax paid on the subject services as they were used in relation to sales promotion, market research, accounting,....