AI Drafter 
TaxTMI 
TaxTMI 
2023 (11) TMI 146
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....erning Automobiles dated 01st October, 2010 ('Service Information Preparation Agreement') with Honda Motor Japan. In terms of the Service Information Preparation Agreement, Honda Motor Japan is obligated to provide Appellant with repair and maintenance information, i.e. repair service manual and spare parts catalogue ('impugned Services'). The Appellant remits a periodical fee (annual fee) to Honda Motor Japan in consideration for the said services. As Honda Motor Japan is located outside India, Appellant pays applicable service tax on reverse charge basis. The Appellant avails the facility of cenvat credit on inputs, capital goods and input services in terms of the Credit Rules. Notably, Appellant also avails credit of service tax paid on the annual fee for parts catalogue and service manual. 2. The learned Advocate appearing on behalf of the Appellant submits that the Appellant is inter alia engaged in packing and re-packing of the automobile parts, classifiable under Chapter 87 of Schedule to the Central Excise Tariff Act, 1985 ('Excise Tariff Act'), in unit containers and affixing labels thereon. Since the parts of automobile are covered under Third Schedule of the Central E....
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....PP-2052-17-18 dated 28.03.2018 and appeal was filed before the Tribunal being Excise Appeal No.71007/2018 whereby the Tribunal allowed the appeal filed by the Appellant. It is the case of the Appellant that the impugned show cause notice dated 21.11.2017 has been issued for the subsequent period i.e. January, 2016 to June, 2017. The Adjudicating Authority vide Order-in-Original dated 20.03.2018 confirmed the demand on the following grounds:- The impugned services are used by the dealers for correct identification of parts and placing order thereafter. Further, the Appellant has not adduced any evidence indicating as to how impugned services are used in its manufacturing activity; The impugned services are not used in manufacture or clearance of final products. The impugned services also do not aid in sales promotion. Accordingly,. The same do not merit classification under the definition of 'input service' under Rule 2(1) of the Credit Rules; and The Appellant has not adduced any evidence to show that cost of impugned services will form part of the cost of final product. Appellate Authority vide impugned order rejected the appeal filed by the Appellant....
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....ment Ltd. [2015 (40) S.T.R. 523 (T-Del.)]. Overseas Infrastructure Alliance (I) Pvt. Ltd. [2021 (44) GSTL 379 (T-Mum.)]. Tata Motors Ltd. [2021 (8) TMI 1112 (CESTAT-Chd)]. Maruti Suzuki India Ltd. [2021 (9) TMI 414 (CESTAT-Chd.)]. Hindalco Industries [2023 (6) TMI 457 (CESTAT-Kol.)]. Zee Media Corporation Ltd. [2018 (18) GSTL 32 (All.)]. Jai Balaji Industries Ltd. [2022 (379) E.L.T. 489 (T-Kol.)]. 6. Arguing for the Revenue learned Authorized Representative reiterated the findings of the Lower Authority. While reiterating he submits that ➢ to qualify as input service the service should have been used for the manufacture of the final products or in or in relation to the manufacture of the final products up to the place of removal. ➢ Appellant has not produce any evidence to the effect that they are using these manuals for manufacture of the finished goods. It is their dealers and distributors who are using these manuals for identification of the correct parts and then placing the order for the same. The services of these part and service manuals are being used by the dealers and not the appellan....
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....ory (hereinafter defined), which shall be duly appointed and authorized by HSCI or HMI as their authorized dealers; (3) The term "Repair or Maintenance Information" shall mean any contents of the information to which customer service staff members of the Dealers in the Territory make reference in order to inspect, repair or maintain one or more of the Products, including, but not limited to, the repair service manual and the spare parts catalogue, irrespective of the means of transmission;" ... Article 2. (scope of Service) 2.1 In accordance with the terms and conditions herein contained, HMI will entrust Honda Motor with, and Honda Motor will perform for HMI, the services (hereinafter referred to as the "Services") with respect to the Repair or Maintenance Information in the following manner: 1) Collecting factual information necessary to create, update or customize the Repair or maintenance Information required by HMI or the Dealers; 2) Determining how best to present or convey the Repair or Maintenance Information; 3) Creating new Repair or Maintenance Information (including text, artwork and photograph) and updating....
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....tact your Honda distributor. Initial version issue date July 20, 2005 Honda Motor Co, Ltd." 10. Part Catalogue is nothing but a part of the inventory management system for the appellant in respect of the parts procured and supplied by them through their dealers to the ultimate customers. It is a well established fact that every automobile - four wheeler vehicle comprises of hundreds of small parts which need to be identified for the effective and comprehensive repair and maintenance of the vehicle. Part catalogue is the document created for codification of all the parts for proper understanding and management of inventory. This codification is used not only for inventory management but also for placing the orders on the suppliers and receiving the orders from the dealers/customers. Even the storage bins are to be identified as per these part catalogue. Orders are placed by referring to the part as codified in this manual and is essential uniform understanding of the part by all in the chain. Without this manual all the operations of the appellant will be haphazard. So we are firmly of the view that this part catalogue is essentially the part inventory management, procur....
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....ortant general service safety precautions follow this text. However, we cannot warn you of very conceivable hazard that can arise in doing service and repair procedures. Only you can decide whether or not you should do a given task." 12. From the above it is quite evident that the maintenance repairs and construction manual, is like an idiot guide to the dealers for undertaking the work of repairs and maintenance of the vehicles ensuring compliance with the high safety standards set by Honda Motors, by use of the genuine parts supplied by the appellant. It provides how to further maintain and repair the vehicles brought to the dealers by their customers. Such standardization is absolutely essential to ensure that standard set by the manufacturer are achieved irrespective of the person or the dealer servicing the vehicle. This standardization will promote the sale of genuine parts which are supplied or sold by the appellants. Thus this manual is essential to the activities undertaken by the appellant through supply of genuine spare parts. 13. It is also noted that appellant are being assessed on MRP basis. The value of the entire services received by the appellant is shown as ....