TaxTMI 
TaxTMI 
2024 (11) TMI 127
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....the Act. 2. Briefly stated facts of the case are that the appellant is engaged in the manufacture and sale of readymade garments falling under Chapter Heading Nos. 61 and 62 of the Central Excise Tariff Act, 1985 and is registered with the Central Excise Department. The appellant is availing the Cenvat Credit in respect of inputs, capital goods and input services under CCR, 2004. During the course of audit for the period March 2011 and FY 2011-2012 conducted by the Department, it was observed that the appellant has availed/utilized the Cenvat Credit of service tax paid on various input services received and utilized in the course of manufacturing activity. The department entertained a view that all the input services, on which Cenvat Credit has been availed by the appellant, do not fall within the definition as provided under Rule 2(l) of the CCR, 2004. On these allegations, show cause notice was issued to the appellant and after following the due process, the learned Commissioner vide the impugned order confirmed the demand for recovery of Cenvat Credit in respect of various input services. Aggrieved by the said impugned order, the appellant has preferred the present appeal. 3. ....
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....ring activity undertaken by the appellant and also outlines the list of cases in which the credit has been allowed on such services: Service category Nexus Reference of Order Renting of immovable property services The rent is paid in respect of spaces/premises wherein excisable goods are being stock transferred from factory premises, stored, displayed for sale and ultimately sold. The rent so paid is an essential element for running the shop/stall/space. The activities relating to clearance of final product upto the place of removal and storage upto the place of removal are covered in the inclusive portion of the definition of "input services" and constitute "input services". * Cantabil Retail India Ltd, Rajesh Rohilla, Anil Bansal, Director Versus CCE, Delhi-I and (Vice-Versa) [2017 (9) TMI 205 - Cestat New Delhi] * Meyer Organics Pvt Ltd V. The Commissioner of Central Excise - Bengaluru - II [2017 (10) TMI 962 - Cestat Bangalore] * Metro Shoes Pvt Ltd v. Commissioner of Central Excise, Mumbai - I [2008 (10) STR 382 (Tri-Mumbai) affirmed by Hon'ble Bombay High Court in [2012 (28) STR J19 (Bom)] * UP Gujarat Freight Carrier Vs. Commissioner of CGST and CE, In....
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.... These services are used for conveyance of employees from residence to warehouse/factory premises, thus, directly in relation to manufacturing activity and not for the personal use and consumption of employees, therefore, credit should be allowed. * Microsoft India (R&D) Pvt. Ltd. vs. CCE, Bangalore 2022 (56) GSTL 29 (Tri-Bang) * Aban offshore 2020 (43) GSTL 213 (tri- Mumbai) * Commissioner of Central Excise, Raipur v. Lafarge India Pvt Ltd [2017 (52) STR 350 (Tri-Del) affirmed in Chhattisgarh High Court in [2018 (14) GSTL J76] 5. On the other hand, the learned AR for the Revenue reiterates the findings of the impugned order and submits that Rent-a-cab Operator's Service, on which Cenvat Credit has been denied, is in the negative list w.e.f. 01.04.2011 and therefore, the appellant is not entitled to avail the Cenvat Credit on the service tax paid on Rent-a-cab Operator's Service. 6. After considering the submissions made by both the parties and perusal of the material on record, we find that it is pertinent to reproduce the definitions of "input service" for the period prior to 01.04.2011 and from April 2011 to March 2012, which are reproduced hereunder: ....
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....categories, in so far as a manufacturer is concerned: (i) Any service used by the manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products (ii) Any service used by the manufacturer whether directly or indirectly, in or in relation to clearance of final products from the place of removal (iii) Services used in relation to setting up, modernization, renovation or repairs of a factory, or an office relating to such factory, (iv) Services used in relation to advertisement or sales promotion, market research, storage upto the place of removal, procurement of inputs, (v) Services used in relation to activities relating to business and outward transportation upto the place of removal. Each limb of the definition of input service can be considered as an independent benefit or concession exemption. If an assessee can satisfy any one of the limbs of the above benefit, exemption or concession, then credit of the input service would be available. This would be so even if the assessee does not satisfy other limb/limbs of the above definition. To illustrate, input services used in relation to setting up, modernization, renovation or repairs....