TaxTMI 
TaxTMI 
2024 (5) TMI 324
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.... filed against respective impugned orders passed by Commissioner of Central Excise, Bangalore. Since commons issues involved, all these appeals are taken up together for hearing and disposal. 2. Briefly stated the facts of the case are that the appellants are engaged in the manufacture of excisable goods viz. 'Industrial Enzymes' falling under CTH 35079099 of Central Excise Tariff Act, 1985 and availing cenvat credit on inputs and input services under Cenvat Credit Rules, 2004. During the course of audit, it was noticed that the appellant had availed cenvat credit on input services viz. Management Consultancy or Business Services, based on the invoices issued by M/s. Biocon Ltd. for mark-up fees / milestone fees against permanent services ....
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....ater, extending canteen facilities, Effluent Treatment Plant(ETP) charges, potable water supply charges, etc. under the category of 'Management Consultancy Services'. He has submitted that the adjudicating authority without considering their submission that all these services bundled as 'Management Consultancy Services' under the said agreement and discharged service tax by Biocon Limited and also since used in the manufacture of excisable products, the appellant availed credit on such services, confirmed the demand; the adjudicating authority has held that the permanent services include ineligible services like supply of electricity, back-up power, steam, supply of water, extending canteen facilities, Effluent Treatment Plant(ETP) charges,....
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....the manufacture of final products; hence not covered under the scope of Rule 2(l) of CENVAT Credit Rules, 2004. Further he has submitted that post-01.04.2011, credit on 'inputs' which cover all expenses relating to business activities cannot be allowed. In support, he has referred to the judgment of the Tribunal in the case of Lafarge India Pvt. Ltd. Vs. CCE, Raipur [2011(22) STR 603 (Tri. Del.)] and in the case of CCE, Nagpur Vs. Manikgarh Cement Works [2010(18) STR 275 (Tri. Mumbai)]. Further, the learned AR has submitted that inclusion of ineligible services under a common category name as 'Management Consultancy Services' will not change the character of an ineligible service and turn into an eligible category service for availment of c....
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....ilities, Effluent Treatment Plant(ETP) charges, potable water supply charges, etc. have been agreed to be provided by Biocon Limited to the appellant described as Permanent Services under the said Agreement. Under the payment terms, the Permanent Services referred to in the Agreement provided by Biocon Limited at actual cost with a fixed mark-up fee described in the said agreement. The Department alleged that the mark-up fees paid along with actual cost of various services classified under the category of 'Management Consultancy Services' cannot be considered as an 'input service' in the hands of appellant; hence not admissible to credit. In other words, the Department on going through the individual services arrived at the conclusion that ....