TaxTMI 
TaxTMI 
2026 (6) TMI 109
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....he department to assail that portion of the order dated 29.03.2023 passed by the Principal Commissioner that drops the demand of recovery of CENVAT credit amounting to Rs. 67,50,989/-. 3. The appellant is engaged in the manufacture of dutiable goods such as sponge iron, pig iron, billets, classifiable under Chapter 72 of the First Schedule to Central Excise Tariff Act, 1985 [Tariff Act] 4. The appellant availed CENVAT credit on various input services, details of which were reflected in the periodical returns filed by it. 5. An audit was initiated by the officers of the Internal Audit Party, Central Excise Commissionerate, Raipur for the period from March 2012 to January 2014 and certain discrepancies were communicated by the department by a Final Audit Report dated 01.09.2014. 6. An audit was also conducted by CAG for the period April 2011 to March 2013, wherein the CAG also intimated several observations by a letter dated 03.06.2014. 7. Subsequently, special audit of records of the appellant was conducted for the period April 2011 to January 2014, wherein several observations were conveyed to the appellant by a letter dated 22.07.2014. 8. In response to the audit....
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....ed by sister concern (i.e., M/s Maa Usha Urja Ltd.) 97,486 97,486 - - - 11. Repair & maintenance of railway tracks situated in the Assessee's premises 9,90,906 - 9,90,906 9,90,906 12. Services received from various vendors [Credit -Rs. 89,52,076] - - - - - a) Pooja Agency 15,42,796 - 15,42,796 - 15,42,796 b) BK Enterprises 4,19,864 4,19,864 4,19,864 c) Shova Construction 2,12,574 2,12,574 2,12,574 d) A. Mukharjee 25,853 25,853 25,853 e) Anand Infracon 6,84,634 6,84,634 6,84,634 f) J.K. Construction 60,66,355 60,66,355 60,66,355 13. Coal Mining 5,150 5,150 - - - Total 2,49,40,473 33,44,889 1,26,43,508 20,49,675 1,95,45,909 12. Feeling aggrieved with the aforesaid order to the extent it was against the appellant, the appellant has filed Excise Appeal No. 55196 of 2023. 13. Ms. Sukriti Das, learned counsel for the appellant assisted by Shri Shivam Bansal made the following submissions: (i) The demand of CENVAT credit amounting to Rs. 20,49,675 confirmed by the impugned order is both factually....
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....t to the show cause notice dated 23.2.2016. The following bifurcation was provided: Nature of Insurance Service Service Tax ED Cess SHE Cess Total (in Rs.) Fire, Plant & Machinery 25,88,538 47,830 23,915 26,60,2833 Marine Cargo 9,22,637 18,359 9,181 9,50,177 Erection all risk 19,36,009 38,721 19,359 19,94,089 Boiler Explosion 69,075 1,277 639 70,991 Survey fees/survey services 1,17,103 2,345 1,166 1,20,614 Storage Policy 1,19,895 2,399 1,199 1,23,493 Public Liability 14,876 298 149 15,323 Money Insurance 1,505 31 15 1,551 Total 57,69,638 1,11,260 55,623 59,36,521 20. The Principal Commissioner has accepted the submissions of the appellant and allowed the CENVAT credit of service tax paid on the above insurance services as admissible, since the said services were directly connected with the business of the appellant and hence, qualified as 'input services' under rule 2(l) of CENVAT Credit Rules, 2004 [the 2004 Credit Rules]. However, the Principal Commissioner treated the CENVAT credit figure of Rs. 1,20,614/- as pertaining to marin....
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....e of final products and clearance of final products up to the place of removal, and includes services used in relation to modernization, renovation or repairs of a factory, premises of provider of output service or an office relating to such factory or premises, advertisement or sales promotion, market research, storage upto the place of removal, procurement of inputs, accounting, auditing, financing, recruitment and quality control, coaching and training, computer networking, credit rating, share registry, security, business exhibition, legal services, inward transportation of inputs or capital goods and outward transportation upto the place of removal; but excludes,- (A) service portion in the execution of a works contract and construction services including service listed under clause (b) of section 66E of the Finance Act (hereinafter referred to as specified services) in so far as they are 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 of the specified service....
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....ervices received from Anand Infracon and J.K. Construction during the period from 25.04.2011 to 31.08.2015. This is corroborated from the copies of the invoices issued by the said service providers for the services provided during the period under dispute. These invoices were submitted by the appellant to the department during the audit proceedings, by a letter dated 05.12.2015. 35. The Principal Commissioner has held that there is no dispute as regards to the receipt of the said services by the appellant for use in its manufacturing operations and so payment of service tax against the said taxable services by the service providers and coverage of the said manpower supply services under the ambit of 'input services', as defined under rule 2(l) of the 2004 Credit Rules is justified. 36. As all the substantive conditions prescribed under rule 4 of the 2004 Credit Rules stood fulfilled, CENVAT credit for procedural lapses cannot be denied to the appellant. 37. This is also what was held by the Tribunal in M/s. Adbur Private Limited vs. CST, Delhi [Service Tax Appeal No. 3630-3632 of 2012 decided on 26.04.2017] and the relevant portion of the decision is reproduced below: ....