2024 (6) TMI 764

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..... The service providers charged service tax at full value from the appellant on works contract services, erection, commissioning and installation services and construction of railway services without availing any abatement or exemption under the law during the relevant period of time. Accordingly, the appellant availed Cenvat credit of service tax paid. The appellant also availed Cenvat credit on plantation services from one M/s. Energy and Resources for development of green cover around Red Mud Pond area. A show cause notice was issued to the appellant on the ground that the appellant has taken Cenvat credit wrongly for the services availed by them as Works Contract Services, as the same were not liable to tax prior to 01.06.2007. Further, the Cenvat credit sought to be denied alleging that the service was not taxable under Construction Service or Commercial or Industrial Construction Services. Further, the Cenvat credit sought to be denied that electricity is neither dutiable to Central Excise nor liable to Service Tax and commissioning of immovable property is also neither liable to service tax nor liable to excise duty, therefore, the Cenvat credit availed by the appellant for ....

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....serve that the issue is no longer res integra as the same issue has been decided by this Tribunal in Appellant's own case, reported as Hindalco Industries Ltd. v. CCE, Kolkata-II,2023 (6) reported in TMI 457 - CESTAT Kolkata. The relevant portion of the said decision is reproduced below: 10. We observe that the Appellant has provided various services to their group companies to enable them to optimize the benefit of specialization and achieve economies of scale. The Appellant claimed that the services provided by ABMCPL to the group companies fall within the definition of 'Business Support Service' defined under Section 65(104c) of the Finance Act, 1994, which is reproduced below:- "support services of business or commerce" means services provided in relation to business or commerce and includes evaluation of prospective customers, telemarketing, processing of purchase orders and fulfillment services, information and tracking of delivery schedules, managing distribution and logistics, customer relationship management services, accounting and processing of transactions, [operational or administrative assistance in any manner], formulation of customer service and pricing....

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....he ABMCPL, wherein ABMCPL carried on these functions on behalf of the Appellant, thus enabling the Appellant to benefit from specialization in their manufacturing activity and achieve economies of scale. The nature of the activities so performed and their close nexus with the business of the Appellant is also clearly visible from the mails exchanged by ABMCPL with the group companies. 14. Further, most of the activities done by ABMCPL are covered under the inclusive portion of the definition of 'input services' viz. advertisement and market research, procurement of inputs, accounting, auditing, financing, recruitment and quality control, coaching and training, computer networking, security, legal services etc. 15. Hence the Appellant is entitled to avail the CENVAT Credit of service tax paid on BSS since they have a nexus with the overall business activity of manufacturing final goods and are essential for the day-today operations of the Appellant. 16. In view of the above discussion, we hold that the services rendered by the ABMCPL is rightly classifiable under the category of 'Business Support Service' and ABMCPL has rightly paid Service Tax under the s....

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....at none of the input services on which credit has been availed by the appellant are excluded or barred by the provisions of the said Rule 2(l) as amended w.e.f. 1-3- 2011. I also find that the said input services are very much in the nature of services directly or indirectly required in relation to the manufacturing/production activities carried out by the appellant at the impugned mine. In the circumstances, I hold that the disputed credits amounting to Rs. 83,823/- availed by the appellants on the aforesaid input services are eligible and correct in law. In consequence, the portion of impugned Order-in-Appeal Nos. 01 and 02/2014 upholding the order dated 26-3-2014 of adjudicating authority, who inter alia disallowed the aforesaid amount, will require to be set aside, which I hereby do. Appeal No. 20555/2015 is thus allowed in toto. 18. In the case of Vikram Cement v. CCE, Indore - 2006 (197) E.L.T. 145 (S.C.), the Hon'ble Supreme Court has held that capital goods and inputs used in captive mines available as credit to the manufacturing unit. The relevant portion of the decision is reproduced below: 5. As regards the Modvat/Cenvat credit on capital goods, if ....

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.... of any dispute as to usage of such services by the Appellant. Accordingly, we hold that the Cenvat credit cannot be denied on this ground. 21. In view of the above discussion, we set aside the impugned order and allow the appeal filed by the Appellant." 6. Further, we also find that in the case of Commr. of C.Ex., Surat-II vs. Gujarat State Fertilizers & Chemicals Ltd. [2013 (291) E.L.T. 375 (Tri.-Ahmd.)], this Tribunal has allowed the Cenvat credit on corresponding service by holding as under:- "5. On careful consideration of the submissions made by both sides, I find that the first appellate authority has relied upon the various judgments to come to a conclusion to hold that appellant is eligible to avail cenvat credit. He has also taken note of the NOC issued by the Gujarat Pollution Control Board issued vide No. GPCB/CTE/SRT-2030/25604 dated 20-11-2009, has specifically laid down the condition, which is as under :- "Adequate plantation shall be carried out all along the periphery of the industrial premises in such a way that the density of the plantation is at least 1000 trees per acre of the land and a green belt of______ metres is developed." ....