TaxTMI 
TaxTMI 
TaxTMI 
2025 (8) TMI 1656
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Related Service/Tower Related Service 48,701 Manpower Recruitment 8,778 Packing and Moving of Household Items (Reversed on 10.08.2015) 10,000 Total (INR) 42,68,107 3. Regarding denial of CENVAT credit of service tax paid on Commission Expenses amounting to Rs 23,81,507/-, the appellant submits that the said Credit was denied on the ground that the services were 'posterior' in nature, i.e., the services had been received after completion of provision of output services and hence the said service could not be directly or indirectly used in the output services. In this regard, the appellant submits that various service providers were engaged by them to collect dues from post-paid customers as well as from customers/subscribers who use e-top up services. Without engaging such recovery agents for timely collection of such dues from customers, they would not be able to run their business and provide output services. Hence, the collection agent services are imperative 'input services' directly related to provision of their output service namely, telecommunication services. 3.1. In this regard, the appellant submits that the issue is no longe....
X X X X Extracts X X X X
X X X X Extracts X X X X
....aken for the purpose of verifying and checking the land density as well signal strength in a particular area and the type of equipment to be installed at particular towers. This activity of land survey is not posterior in nature, but rather anterior in nature considering that only upon completion of the land survey the installation of the tower/shelter, etc. can be undertaken by the Appellant. Further, the Appellant submits that the land survey is directly proximate to the output services provided by the Appellant so as to ensure coverage of equipment and bring in maximum number of subscribers. Accordingly, the appellant submits that the said service is squarely covered under the means clause of Rule 2(l) of CENVAT Credit Rules. 5.1. In support of their claim, the appellant relied on the decision in the case of Nuvoco Vistas Corporation Limited v. C.C.E & S.T, Panchkula [2019 (2) TMI 1292-CESTAT Chandigarh]. Thus, the appellant submits that the demand confirmed in the impugned order on this count merits to be set aside. 6. Regarding denial of CENVAT credit amounting to Rs.48,701/, the appellant submits that the said credit pertains to services received by them in rela....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nai] * Integra Software Services Pvt Ltd v. Commissioner of C.Ex., Puducherry [2017 (5) S.T.R 145 (Tri- Chennai)] * Enmas Andritz Pvt Ltd v. Commissioner of Service Tax, Chennai-II [2017 (48) S.T.R. 261 (Tri-Chenai)] 7.1. In view of the above submissions, the appellant prayed for setting aside the demand confirmed in the impugned order on this count. 8. Regarding the denial of CENVAT credit amounting to Rs.10,000/- availed on Packing and Moving of Household Items, the Appellant submits that whenever an employee of the Appellant is transferred to a different job location, the Appellant reimburses the cost incurred by the employee towards transportation. It is integral to the business of the Appellant. However, to avoid litigation, they took a decision to reverse the credit of Rs 10,000/- and reversed the same on 10.08.2015 . Thus, the appellant submits that they are not contesting the demand confirmed in the impugned order on this count. 9. In view of the above submissions, the appellant prayed for setting aside the demands confirmed in the impugned order except the credit of Rs.10,000/- which has already been reversed on Packing and Moving of House....
X X X X Extracts X X X X
X X X X Extracts X X X X
....DELHI] wherein it was held as under: - "14. This apart, what needs to be noticed is that the view taken by the Joint Commissioner that since the activities in respect of collection /recovery of postpaid plan outstanding dues had been undertaken after completion of the provision of taxable output services they would not be covered in the main part or the inclusive part of the definition of input service is not correct. Rule 2(l) of the 2004 Rules provides that the input service must be used for providing output service. The provider of output service, therefore, shall be eligible to avail CENVAT Credit on all those services which are used for providing output services without which the provision of the said output service would become impossible or commercially inexpedient. What, therefore, follows is that services having relation with the business of providing of output service would be covered by the definition of input service. In this connection, reference can be made to the decision of the Tribunal in Bajaj Finance Ltd. Vs. Commissioner of Central Excise, Pune 2018 (10) GSTL 251 (Tri.-Mumbai) wherein the Tribunal held as follows: 4. xxxxxxxxxxx From the above definition i....
X X X X Extracts X X X X
X X X X Extracts X X X X
....pugned order is set aside. The appeal is allowed. 15. In Vodafone Essar Cellular Ltd., the Tribunal also reiterated the aforesaid views in the following manner:- The third issue that arises for consideration is the credit availed on various input services. The appellant has given the details of the various input services in the table as shown above. The services erection, construction and installation of towers and shelters was availed by the appellant for providing output service of telecommunication. These services have direct nexus with the output service and therefore, is eligible for credit. The Tribunal in the appellant's own case vide Final Order dated 22.01.2018 has allowed the credit. For this reason, we hold that the credit on this service is eligible. The appellant has availed credit on collection charges which are nothing but charges paid to Bill Collection Agencies. In the case of Bajaj Finance Ltd. Vs. C.C.E., Pune-1 - 2018 (10) G.S.T.L. 251 (Tri. - Mum.) it was held that assessee is entitled to CENVAT Credit on input services which were used for repossession of vehicle by recovery agent. Here, the appellants have used the facility of Bill Collectors/Agents ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....is umbrella fixed asset policy. The appellant has taken this insurance policy to cover the risk such as fire, theft, weather damages of the fixed assets of the appellant as well as those goods that have been installed within the premises of the customer The Ld. Counsel for appellant has explained that routers and such equipment are installed in the premises of the customers for providing output service. These are assets of the company and are owned by the company and only for providing service, it is installed in the customers' premises. This insurance policy is taken to cover the risk of fixed assets and is eligible for credit. Hence the disallowance is unjustified. Further, in the appellant's own case, the Commissioner (Appeals) for the earlier period has allowed the credit on this insurance policy. 14.1. Thus, by relying on the decision cited supra, I hold that the appellant is eligible for the CENVAT credit of Rs 17,69,772/- availed on Insurance Premium for Equipments. Accordingly, I set aside the demand confirmed in the impugned order on this count. 15. Regarding the denial of CENVAT credit of Rs. 59,349/- availed on Land survey, I find that the said Cre....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e used for (a) construction or execution of works contract of a building or a civil structure or a part thereof, or (b) laying of foundation or making of structures for support of capital goods, except for the provision of one or more the specified services, or] on going through the above said definition, I find that although the services of setting up of a new factory has been excluded from inclusive part of the definition and particularly excluded the service portion of execution of works contract and construction services which includes A construction execution of works construction building for civil construction or lying the foundation or making the structure for support of capital goods. It does not mean that the other services used for setting up for a new factory, the credit is not available. In fact, the input service is defining two parts A is means part and B is inclusive part. In the mean part, it is mentioned that any service used by a manufacturer in relation to manufacture of final product and clearance thereof, whether it is directly or indirectly. The service in question has been used by the appellant for setting up of a factory and without setting up of t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ourt in the case of Mis Bellsonica auto components India p. Ltd. (Supra), therefore, in my considered opinion, the appellant is entitled to avail Cenvat credit for the services namely change of land use, topographical survey and consultancy of environment services." 15.2. Thus, by relying on the decision cited supra, I hold that the demand confirmed in the impugned order on this count is not sustainable and hence the same is set aside. 16. Regarding denial of CENVAT credit amounting to Rs.48,701/-, I find that the said credit pertains to services received by the appellant in relation to Civil works, electrical works, erection works, freight paid etc, which are in relation to construction of civil structures utilised for providing their output Services . I find that in the impugned order, the credit has been denied by relying on the decision of the Larger Bench in the case of Vandana Global Vandana Global Ltd., 2010 (253) ELT 440 and Bharti Airtel Ltd 2014 (35) S.T.R. 865 of Hon'ble Bombay HC. However, I find that the said decisions relied upon by the lower authorities have already been reversed and hence they are not applicable for....