TaxTMI 
TaxTMI 
2024 (9) TMI 1874
X X X X Extracts X X X X
X X X X Extracts X X X X
....ority - than denial of credit and, more particularly so, with additions to, or deductions from, assessable value having receded from the regulatory 'firmament' with ascertainable 'transaction value' having supplanted conceptual 'normal price' as the base for duty leviable 'ad valorem' and, notwithstanding or probably owing to, the joint provenance of credit scheme from two mutually exclusive, though commercially enmeshed, levies. 2. The appellant manufactured 'adhesives', 'chemicals', 'paints' and 'pigments' at seven factories and had procured certain services at the head office which was being distributed to different factories, including the four in the jurisdiction of Commissioner of Central Excise, Raigad, during the disputed period. Credit of tax paid on services procured for specific factories, on occasion, were also transferred using the ISD invoice, though, exclusively to those factories. Four show cause notices, taking recourse to rule 14 of CENVAT Credit Rules, 2004 for recovery of credit alleged to have been availed without eligibility between 2006-07 and 2010-11 (upto January 2011) and to rule 15 of CENVAT Credit Rules, 2004 for imposition of attendant penalty, were ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....2,542 availed on 'input service' for not having established correlation with final product and of Rs. 15,15,698 for lack of nexus of such 'input service' with final product does not stand the test of judicial scrutiny and is demonstrative of inconsistency inasmuch as adjudication in subsequent proceedings was dropping of demands. He submitted that the impugned services, even with the amendment in the definition continued to be covered and had been consumed in connection with the manufacturing process. Furthermore, according to him, the dispute pertains to the period prior to amendment and, hence, not appropriate basis for the conclusion in the adjudication order. He clarified the nexus and contribution of 'cleaning service', 'outdoor catering service', 'authorized service station', 'internet café service', 'mandap keeper service', 'event management service', 'photography service', 'public relation management service' and 'stock exchange service' to the goods manufactured by the appellant. Likewise, the usage of 'architect service', 'construction service', 'air travel agency service', 'rail travel agent service' 'rent-a-cab operator service', 'tour operator service' and 'trav....
X X X X Extracts X X X X
X X X X Extracts X X X X
....from 1st April 2004 and proportional distribution was not a prescribed requirement until the amendment of 1st July 2012. 7. Reliance was placed on the decision of the Hon'ble High Court of Karnataka in Commissioner of Central Excise, Bangalore - I v. ECOF Industries Pvt Ltd [2011 (271) ELT 58 (Kar)] and of the Tribunal in Dabur India Ltd v. Commissioner of Central Excise & Service Tax, Ghaziabad [2017 (6) GSTL 106 (Tri-All)]. 8. Learned Authorised Representative took us through the impugned order and drew our attention to '46.8 Thus, the definition of 'input service' not only covers services, which fall in the substantial part, but also covers services, which are covered under the inclusive part of the definition. The substantive part of the definition "input service" covers services used directly or indirectly in or in relation to the manufacture of final products whereas the inclusive part of the definition of "input services" covers various services used in relation to the business of manufacturing the final product. In other words, the definition of "input service" is very wide and covers not only services which are directly or indirectly used in or in re....
X X X X Extracts X X X X
X X X X Extracts X X X X
....n the adjudication order, was disposed off on challenge before the Hon'ble High Court of Bombay by remand back to the Tribunal owing to which it no longer is good law; furthermore, the Tribunal, in disposing off the remand, set aside the order of the original authority for further remand back. Per contra, the decision of the Tribunal in Ingersoll Rand Technologies and Services Private Ltd v. Commissioner of Central Excise, Ghaziabad [2022 (8) TMI 877- CESTAT ALLAHABAD], has held that '18. It is clear from the definition of 'exempted services' w.e.f. 1-4-2011 that 'exempted services' included trading. The issue that arises for consideration is whether the Explanation to rule 2(e) is prospective in nature as submitted by the appellant or it merely clarifies that trading activities were always an 'exempted service', as is contended by the department. 19. To understand the scope of 'Explanation', it would be useful to refer to the decision of the Supreme Court in Sedco Forex. The Supreme Court clarified that if Explanation' widens the scope of the main provision, then it would be presumed to have only prospective effect, unless a co....