2024 (9) TMI 454

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....rom them on proportionate basis. Since it was reimbursement of the cost, Tata Motors were not paying any Service Tax. The Department took the view that this would amount to provision of service under the category of 'Business Support Service'. A Show Cause Notice was issued to them on 14/09/2010 for the period 01/05/2006 to 09/05/2008 demanding the service under 'Business Support Service (BSS). In order to avoid further litigation, Tata Motors started paying Service Tax under heading of "BSS". Accordingly, during the period under consideration, they have raised their monthly bills on the appellant showing that they have undertaken the service of BSS for the appellants, showing the value of the service along with Service Tax thereof. The app....

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....provided by Tata Motors Ltd. to the appellant. He further submits that the definition of input services under the main part of Rule 2 (l) of CCR,2004 is quite exhaustive and so long as any 'input service' is used towards provision of input service or towards 'manufacturing', the Cenvat Credit can be taken. The only exception is for services which are specifically mentioned under the exclusion clause. In this case, BSS services is not finding place in the exclusion clause. He submits that the issue as to whether such BSS service would be eligible for cenvat credit or not was before this Bench in the case of Hindalco Industries Ltd. V. CCE, Kolkata-II 2023 (6) TMI 457-CESTAT Kolkata. It was held that the assessee is eligible for Cenvat Credit....

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.... Appellant. After this, we have to come to conclusion as to whether such service has any nexus with the manufacturing/output service of the appellant. 6. We do not find anything contrary to this. This issue has also been considered by this Bench in the cited case law of Hindalco Industries Pvt. Ltd. the relevant portion of the Tribunal's Order are extracted below: Hindalco Industries Ltd. V. CCE, Kolkata-II 2023 (6) TMI 457-CESTAT Kolkata 13. The Appellant availed BSS provided by the 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 clos....

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....th the manufacturing of the dutiable products and hence the same do not fall under Rule 2 (l) of Cenvat Credit Rules, 2004 as input service. It was also observed that ABMCPL was merely distributing credit despite not being an input service distributor and hence cenvat credit is not available to the assessee since it was a violation of provisions of Rule 2 (l),Rule 7 and Rule 9 of the Cenvat Credit Rules, 2004. 8. As the issue has already been decided in favour of the assessee, therefore, we hold that the service rendered by ABMCPL is rightly classifiable under the category of BSS and ABMCPL has rightly paid the service tax under the said category and the service tax paid by ABMCPL has rightly been distributed to their group companies inc....