TaxTMI 
TaxTMI 
2021 (12) TMI 73
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....ted at Mumbai. Learned Counsel pointed out that the appellant have entered into service agreement with M/s Styrolution South East Asis Pte. Ltd, Singapore; Intra-Group Licence Agreement with M/s Styrolution Group GMBH, and Sub-Contract Agreement with M/s Styrolution Group GMBH, Germany for the services received under these agreements the appellant make payment in foreign currency and also pay service tax thereon under reverse charge as per service tax law. The appellants availed Cenvat credit on these services. Learned counsel submitted a table to elaborate the nature of service and the usage it was put to. 2.1 Learned Counsel further relied on the circular No. 943/04/2011-CX dated 29.04.2011 asserts that there is no necessity of direct use or nexus of taxable service with the manufacture and clearance of final product. Learned Counsel further pointed out that the impugned order relies on the assertion that the Mumbai office of the appellant is not registered as input service distributor. Learned counsel pointed out that the appellant have only one manufacturing division at Dehaj and their marketing office located at Mumbai. He pointed out that in this circumstance that there is....
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....ged on fix management basis. 5. Repair & Control (Percentage) Services These are expenses related to reporting and controlling. These are finance activity 6. External Communication (Percentage) services. It is a fix charges incurred for external communication 7. Managing Director (Percentage) services Managing Director was common so his expenses were charged to respective companies. 8. Accel- Order to services. M/s Styrolution India Ltd., Dahej had taken a project of business promotion named as Accelerator. Expenses related to this activities were charges under this head 9 Accounts & Management Information system (MIS) Services These services are in relation to finance activities/matters. MIS services mean Management Information System Services. This is a kind of financial report/overall business activity. 10. Accounts Pay (Percentage) Services These are the expenses related to financial activities charges on a fix percentage 11. Accounts Receivable Service This is an activity in relation to collection of outstanding money. 12 Business Partner Services The service provider deputed some person for common busines....
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.... fixed percentage basis 25 Sustainable Development (Percentage) services It was a project undertaken by the company to improve and maintain development on sustainable basis, fixed percentage was charged 26 Technical Procurement (Percentage ),Tax Purchases related to engineering items like machinery, spare parts, etc. fixed percentage was charged. 27 Transport Management Services Transport management module was introduced in SAP Expenses related to it are charged herewith. 28 Treasury (Percentage) Services It is a finance activity. Fixed percentages were charged. He is not aware of the service under which category this service is covered In the said appeal also learned counsel has relied on various case laws to assert that credit can be availed on various services. This specific nature of each head of service listed in the table above has not been elaborated. 3. Learned AR relies on the Impugned order. 3.1 In the written submission submitted on 06.08.2021 learned AR pointed that the submission made by the learned Counsel that they have only one manufacturing unit is incorrect. He referred to the CERA Audit Report as ap....
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.... Usage and requirement of Service Findings 1. Advocate's Service (Legal Services). The Legal services are availed from Advocates for Central Excise Matters. Legal Services are Covered under inclusive part of definition of input services. Legal Services for Central Excise matters are admissible for the purpose of Cenvat credit 2. Chartered Accountant's services. Chartered Accountant services were used for income tax & Accounting matters. Accounting and Auditing are covered under the inclusive part of definition of input services Chartered Accountant services for income tax and accounts are specifically covered 3. Insurance Surveyor's Services. The services of Insurance surveyors were utilised for survey report of raw material required for production. Services related to Procurement of inputs are covered under inclusive part of definition of Input services. Judgments : i) 2014 (313) ELT 714 (T) CCE Vs. India Cements Ltd. ii) 2015 (40) STR 774 (T) DCW Ltd. Vs. CCE Moreover, the case law cited by appellant squarely covers such services. The services are in relation to procurement of raw material therefore, admissible as credit. ....
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.... up to place of removal for storage of goods are admissible services. 8 Banking and other Financial Services Banking Service relate to financing, Foreign Exchange related to import of raw material and export of manufactured goods. Services related to financing are covered under input service definition. In this context, the Appellant rely upon the judgment in case of Semco Electric P. Ltd. Vs. CCE reported in 2012 (25) STR 73 (T) Moreover, the case law cited by appellant squarely covers such services. Services related to procurement of raw material are admissible for credit or service tax. 9 Business Auxiliary Services Sales Commission is given 10 distributors' for sale of our manufactured goods. Sales promotion is covered under the inclusive part of definition. Of input services In this context, the Appellant rely upon the following Judgments:- (i)2016-TIOL-520-CESTAT-AHM Essar Steel India Ltd. Vs. CCE (ii) 2012 (25) STR 348 (P&H) CCE Vs. Ambika Overseas iii) CBE&C Instruction F. No.96/85/2015-CX.I dated 07 12.2015 The Hon'ble High Court of Gujarat in the case of Cadila- 2013 (30) STR 3 has observed that it is not admissible for credit of se....
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....ormed. Therefore, these services are covered under the definition of input services. In this context, the Appellant rely upon the following judgments : i) 2013 (30) STR 3 (Guj.) CCE Vs. Cadila Healthcare Ltd. ii) 2016 (41) STR 990 (T) John Deere India Pvt. Ltd. Vs. CCE iii) 2016 (6) TMI 161-Cestat Sundaram Clayton Ltd. Vs. CCE Moreover, the case law cited by appellant squarely covers such services. The services are used for marketing and sale of excisable goods,. The credit is therefore, admissible. 15 Taxation Consultancy Service. Taxation services related to accounting, are covered under the definition of input services Taxation and accounting are covered in the definition of inputs services. Therefore, the credit is admissible. 16 Renting of immovable property services. These services relate to Rent for our Marketing office at Mumbai. Services availed for office relating to factory are covered under inclusive part of definition. In this context, the Appellant rely upon the following judgements: (I)2013 (30) STR 511 (T) National Engineering Inds. Ltd. Vs. CCE ii) 2013 (30) STR 357 (T) Oracle Granito Ltd. Vs.CCE iii) 2016 (41) STR 990....
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....pport. The Appellants are availing SAP Services for Procurement, sales, Production, Quality Control, Accounts & Finance, & Inventory Management Maintenance etc. & therefore are covered under the definition of Input Services. In this context, the Appellant rely upon the judgment in case of Castrol India Ltd. Vs. CCE reported in 2013 (30) STR 214 (T). Moreover, the case law cited by appellant squarely covers such services. Services are used for accounting activity which is specifically included in the definition of inputs services. Therefore, the credit is admissible. 5 Technical Testing and Services Analysis Technical testing & Analysis of Finished Goods. This is required for ensuring quality of manufactured goods and therefore covered under the definition of input services. In this context, the Appellant rely upon the following judgments : i) 2013 (30) STR 572 (T) Semco Electric P. Ltd. Vs.CCE ii) 2013 (30) STR 3 (Guj.) CCE Vs. Cadila Healthcare Ltd. Moreover, the case law cited by appellant squarely covers such services. The services are in relation to quality of control of excisable goods. The credit is therefore, admissible It is seen that appella....