AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2025 (11) TMI 774
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....s mopping of the office premises, cleaning of toilets and wash basins and providing drinking water etc. Since these activities carried out by the workers engaged by M/s.BSNL on contract basis from the manpower suppliers had no direct nexus with the provision of the output service i.e. telecom service, and the credit of service tax taken on such deployment of manpower appeared to be outside the ambit of the definition of 'input service' as defined in Rule 2(l) of CCR. Hence, it appears that the CENVAT credit of service tax taken in respect of Manpower supply service is liable to be disallowed and recovered from M/s.BSNL, Nagercoil. Similarly, they had availed CENVAT credit of service tax paid on repair and maintenance of their vehicles which were used by the staff. Since the vehicles were not used for providing the taxable output service, it appears that the credit availed on repair and maintenance of such vehicles is also liable to be disallowed. Upon scrutiny of documents and verification of CENVAT records, Revenue appears to have entertained a doubt that the Appellant-BSNL had contravened the provisions of Rule 2(1), Rule 4 (2) (a), Rule 7 and Rule 9(f) & (g) of CCR, 2004, which ....
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....y been decided and laid to rest by various judicial pronouncements and hence, the demand raised in the impugned order cannot sustain. In this regard, he has relied on the following decisions : (i) CST Vs Hathway Cable & Datacom Pvt. Ltd. - 2019 (369) ELT 714 (Tri.-Chennai) (ii) CCE & ST LTU Chennai Vs Rane TRW Steering Systems Ltd. 2015 (39) STR 13 (Mad.) (iii) WIPRO Ltd. Vs CCE Puducherry - 2018 (10) GSTL 172 (Mad.) (iv) Final Order 1215-1216/2011 dt. 02.11.2011 by CESTAT Chennai in Appellant's own case [Appeal Nos.ST/297-298/2011] (v) CC & CE Vs Federal Bank Ltd. - 2013 (29) STR 554 (Ker) (vi) Federal Bank Ltd. Vs CCE Cochin 2010 (8) STR 62 (Tri.-Bang.) 5. Per contra, Smt. O.M. Reena, ld. Additional Commissioner relied upon the findings in the impugned order. 6. Upon hearing both sides, we find that the following issues arise for our consideration :- (1) Whether the Appellant is entitled to avail cenvat credit on Manpower Recruitment or Supply Agency Services?; (2) Whether the Appellant is entitled to avail cenvat credit on Repair and Maintenance of motor vehicles as input services ? ; ....
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....d narrow interpretation of the legal provisions as existed during the period of dispute, the Input Service Distributor (I.S.D.) would have distributed the Cenvat credit only in respect of Service Tax paid on the input service. It is also true that the provision enabling taking of credit of inputs and capital goods received from the I.S.D. was given effect by introduction of Rule 7(a) in the said Rule by Notification No. 10/2008-C.E. (N.T.) w.e.f. 1-4-2008. All the same, in our view, credits on capital goods which are undisputedly going to be put to use directly or indirectly by the assessee for providing their output service, cannot be denied only on the grounds that the impugned equipments have been imported by their head office who in turn have distributed the Cenvat credit emerging thereof by way of a M.R.O. It is also an undisputed fact that the assessee is a PAN India Service provider with their head office at Mumbai. Ostensibly, only for enabling the related accounting matters to be handled by the head office, the impugned equipment have been imported by the said head office only. There would have been no cause for complaint, if the assessee had themselves imported the said e....
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.... said decision, this appeal is liable to be dismissed. Accordingly, the substantial question of law is answered in favour of the assessee/respondent and against the appellant/Revenue." 9. For the reasons afore-stated, this appeal fails and the same is dismissed. However, in the circumstances of the case, there shall be no order as to costs." The above decision was also relied on by the Hon'ble High Court of Madras in WIPRO Ltd. (supra). 7.3 As regards credit availed of service tax paid on commission paid to post office, the services rendered by Post Offices to BSNL is held to be an 'input service' as decided by this Bench in Appellant's own case vide Final Order No.12151216 of 2011 dated 02.11.2011 [Appeal No.ST/297-298/2011]. The relevant findings read as under : "Heard both sides. 2. Considering the continuing nature of provision of telecom service by the appellants and periodic collection of bills by the authorized post offices, I find no infirmity in the order passed by the lower appellate authority requiring intervention of the Tribunal. As such, both the appeals filed by the department are rejected." Further, the services of post offices in....
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....lause 19(vii). We feel in a broad sense cash management service is also a business auxiliary service. However the question is which is the more appropriate charging provision under which the Respondent Bank's service would fall. In order to examine this we have to refer to the definition of business auxiliary service also and for this purpose clause 19(vii) defining 'business auxiliary service' is extracted hereunder. "a service incidental or auxiliary to any activity specified in sub-clauses (i) to (vi), such as billing, issue or collection or recovery of cheques, payments, maintenance of accounts and remittance, inventory management, evaluation or development of prospective customer or vendor, public relation services, management or supervision." We are of the view that the above definition is with specific reference to each and every service covered by sub-clauses (1) & (vi) which do not specifically cover Banking and other financial services. Banking and other financial services are specifically covered by clause 12 and there is no scope for charging tax on any service rendered by Banks under any other head. In other words we are of the view that clause 12 of ....