TaxTMI 
TaxTMI 
2022 (2) TMI 545
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....mber, regional member, regional entity and central entity also in addition to the appellant during 2008-09 to 2012-13. (b) Group Mediclaim Insurance Policy/Tailor made floater Group Mediclaim Policy during 2007-08 to 2011-12. (c) Invoices of M/s. Wizcraft for EOY Awards expenses on Budget day programme expenses during 2007-08 to 2011-12. (d) On renting of immovable property availed for the period April and May, 2007 during March, 2008 against bills of M/s. Perfect Business Centre Services Pvt. Ltd. and M/s. Ind Global Corporate Finance Pvt. Ltd., as such services were not taxable prior to 01.06.2007. (e) Bills of M/s. Perfect Business Centre Services Pvt. Ltd. pertaining to reimbursement of cost of travel coupons issued in favour of Appellant's employees in the month of February, 2010 and against improper documents for inadmissible services during 2007-08 to 2011-12. (f) Bills of M/s. Woodcraft India Pvt. Ltd. were not proper documents as the same were not issued in favour of the appellants. 3. Periodical show cause notices were issued to the appellant and the matter was adjudicated by way of the im....
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....to business activities' which is a very wide term. Such service has been specifically excluded from the definition of 'Input Service' w.e.f. 1.4.2011 and the cenvet credit has been availed by the appellant prior to 1.4.2011, therefore, it is prayed that the cenvet credit is admissible on these services. 6.1. To support his contention, he relied on the judgments in the following cases; - (a) CST v. Team Lease Services Pvt.Ltd.-2014 (36) ELT STR 543 (Kar.) (b) Prism Cement v. CCE, Bhopal-2019 (369) ELT 1205 (Tri. - Del.) (c) PTC Software India Pvt. Ltd. v.CCE-2014 (35) STR 632 (Tri.) (d) KPMG v. CCE. New Delhi-2014 (33) STR 96 (Tri. - Del.). 7. With regard to the availability of Cenvat credit against Bills of M/s. Wizcraft for EOY awards expenses and budget day programme expense, it his submission that the Budget Day function is organized specifically to discuss the annual Union Budget changes with employees of the appellant across country to provide them knowledge which helps in providing services (tax and regulatory consultancy) to the clients. Further, an EOY award is an event where top industry leade....
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....it for ancillary services. He further submits that no evidence placed on record by the Department to show that such input services are not used by the appellant for providing output services. Therefore, the appellant is entitled to avail cenvet credit. 8.1. To support his contention, he relied on the decisions in the following cases: - (i) Manikgarh Cement v. CCE-2011 (22) STR 471 (Tri.-Mum) (ii) CCE v. Carborandum Universal Ltd.-2009 (16) STR 181 (Tri.- Chennai). 9. Cenvet credit against improper documents, He submits that the invoice raised by M/s Woodcraft were addressed to the one of the registered premises of the appellant and the civil work was done at one of the registered premises of the appellant involving maintenance, repairs and renovation of the office premises from where the appellant provides consultancy services. The service provider has given a declaration that services have been provided to the registered address of the appellant and that the service tax has been paid by the appellant to the service provider. Therefore, the appellant is entitled to take Cenvet credit as services used in or in relation to setting up....
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....sp; Kirloskar Pneumatic Co. Ltd. v. CCE, Pune-2011 (22) STR 121 (Tri.-Mum.) 12. He also prayed that the penalties be dropped by invoking section 80 of Finance Act, 1994. 13. On the other hand, ld.AR opposed the contention of the ld. Counsel and submits as under: - Professional Indemnity Insurance Policies (for short 'PII') REBUTTAL: The adjudicating authority has noted that the subject services have no relation to provision of service rendered by the appellant either as a main constituent for providing output service under clause (i) of Rule 2(l) of the Cenvet Credit Rules nor under inclusive definition provided under clause (ii) of Rule 2(l) of the Cenvet Credit Rules under "activities relating to Business", while relying on the decision of the Hon'ble High Court of Gujarat in the case of CCE Vs. Cadila Healthcare Ltd.-2009 (30) STR 0003 wherein it has specifically been held that the words "such as" used in the definition should bear some similarity to the illustrative activities. Further, these services can be, not in all cases, but in case of any eventuality used only when the output service is complete and delivered and being post delivered serv....
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....vices used for similar purposes; c) Provide a practical scheme for the segregation of Cenvat credits used in respect of final products and output services where they are partially exempted with condition that no such credits shall be taken; d) Liberalize the provisions in certain areas to meet the legitimate demands of business; On the same lines, a service meant primarily for the personal use or consumption of employees will not constitute an input service. A list of specific services has also been given by way of example in the definition. Most of these services constitute a part of the cost-to-company package of the employee and are provided either free of charge or on concessional basis to company employees. Lastly, in Dharti Dredging & Infrastructure Ltd. vs. CGST, Hyderabad-2021-TIOL-223-CESTAT-HYD-LB a 2-member Larger Bench constituted specifically to examine the admissibility of the input credit of service tax paid on premium of Group Insurance Policy taken out by an assessee to meet with the requirement of Workmen Compensation Act, 1923 noted that the admissibility would depend on the person to who the benefit of the policy accrued to. I....
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....e said reasons, the decision relied upon by the appellants in the case of Idea Cellular Limited vs. CCE-2011 (22) STR 450 (Tri.), Shree Cements Ltd. vs. CCE & ST -2014 (36) STR 1107 (T), Castrol India Ltd. vs. CCE-2013 (291) ELT 469 (T) are not applicable to the present case in as much as in the said cases the events were held either for training or for promotional activities as also held by the adjudicating authority. 16. Credit of service tax paid/collected on Renting of Immovable Property Service for period prior to 01.06.2007 Invoices raised in 03/08 for by Perfect Business Centre Services Pvt. Ltd. for the period April, 2007 to September, 2007 and M/s. Ind Global Corporate Finance (P) Limited, in March, 2008 for the entire year 2007-08. Credit availed for the period April, 2007 and May, 2007 even when the said services were not taxable. REBUTTAL: As per Rule 3 of CCR, a manufacturer or producer of final products or a provider of output service shall be allowed to take credit of the service tax leviable under section 66 of the Finance Act. The Cenvat scheme did not extend service tax credit on non-taxable services. The subject services cannot be considered ....
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....REBUTTAL: The invoices cover the period 31.05.2007 to 31.03.2008. The ST-2 certificate mentions various addresses registered under centralized registration. It mentions the date of issue of original ST-2 as 18.08.2008. Thus, the premises mentioned on the service provider's invoices were not registered premises at the time of issuance of invoices. 19. Substantive benefit cannot be denied REBUTTAL: Until and unless the credit in question can be held to be admissible substantively, the same cannot be allowed. Any procedural infirmities, which can be rectified at a later date also, can be ignored solely for evaluating the substantive benefit, but will still have to be fulfilled to avail the benefit in question. 20. Invocation of extended period of limitation REBUTTAL: The appellant was cast with the responsibility to self-assess the admissibility of Cenvat credit as also the valuation and classification of the output services. The irregularities were brought out only while conducting Special Audit under Section 14A of the Central Excise Act, 1944 as made applicable to Finance Act, 1994 and evidencing intention to avail inadmissible Cenvat Credit. Hence, extended....
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....he inclusive part of the definition and it is used only when output service is complete and delivered. 6. On the question as to whether the professional indemnity insurance service has nexus with output service, I completely agree with the analysis of the Commissioner (Appeals) in the following paragraphs extracted from the Order-in-Appeal: "The Definition of Input Service Rule 2 (l) of Cenvat Credit Rules, 2004 defines the Input Service w.e.f.01.07.2012. "(I) Input service means any service, (i) used by a provider of taxable service for providing 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 upto 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 upto the place of removal, procurement of inputs, accounting, auditing financing, recruitment and quality control, coaching and training, comp....
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....lientele by way of reliable deliverables. Thus, I find that professional indemnity insurance service have nexus with the output service and is covered under definition of input service. 7. I find that the adjudicating authority has allowed refund for general insurance service for employees, equipments and property, for insuring the company against unforeseen circumstance. On the same analogy, the professional indemnity insurance service has to be viewed in the context of providing the consultancy or other professional services, where the assessee has to safeguard itself against unforeseen legal damages/costs due to negligence or other bonafide mistakes of the employees/partners. Hence, the professional indemnity insurance service is an essential ingredient for providing the output service and has direct nexus with the providing of output service. 22. The case laws relied upon by the ld.AR have no relevance to the fact of this case. Further, in the appellant's own case, this Tribunal has held that the appellant is entitled to credit on Professional Indemnity Insurance Service, therefore, following our own decision in appellant's own case, we allow credit avai....
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....as input service. Further, an EOY award is an event where top industry leaders, professionals and entrepreneurs who have excelled in their respective fields are appreciated and recognized for their achievements. The event is attended by senior management personnel of the appellant which gives them an opportunity to develop new business relationships which are leveraged in future to generate business. Therefore, we hold that said activity is also termed as service availed in relation to the business of the appellant, the same is entitled to cenvet credit as input service. 25. Cenvat credit against bills of Perfect Business Centre Services Pvt. Ltd. on cost of travel coupons in February, 2010, We find that the main contention of the appellant is service provider is providing renting of immovable service and other services and its travel coupons are part of the service as support service as the main service is a renting but the distribution of coupons is other support service. Therefore, the appellant has to take credit of the main service and also on other support service. We find that there is bifurcation of the services availed by the appellant. The appellant has failed....