TaxTMI 
TaxTMI 
2026 (6) TMI 108
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....the case are the Appellant is a manufacturer of dutiable products viz. Oil filtration machines and also exempt products viz. Agricultural seed processing machines. Further, the Appellant is also a service provider registered under the Finance Act, 1994, inter-alia providing 'erection and commissioning' services. A show cause notice (SCN) was issued to the Appellant on 04.03.2011 for the period November 2007 to August 2010, under the proviso to Section 11A of the Central Excise Act, 1944, invoking extended period of limitation. Subsequently, Order-in-Original dated 28.12.2011 was issued disallowing CENVAT credit on certain services availed for the purposes of business. On appeal, partial relief was granted by the Commissioner (Appeal....
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....rvices and utilising the same for payment of excise duty, when such a fact is clearly within the knowledge of the Respondent, as early as April 2009, there cannot be any justification for invoking extended period of limitation alleging suppression of facts, vide the show cause notice (SCN) dated 04.03.2011. Learned Counsel submits that the issue of eligibility to avail CENVAT credit is, at best, interpretative in nature, involving complex provisions of law and placed reliance on the following decisions for the proposition that the extended period of limitation cannot be invoked where the matter involves interpretation of statutory provisions: a. Rose Bed Rolls Vs. CC CE&ST, Cochin (Order dated 15.10.2024 in STA No. 823 of 2010) - C....
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....n by the sub-contractors and not the Appellant, who is only a supplier of finished goods, thus input tax credit is not admissible. Appellant is also an output service provider registered as such under the Service Tax Act. E&C is an independent service which the Appellant provides which is charged separately, and applicable output service tax paid is also paid on the said services. For providing such output service, the Appellant has availed the services of sub-contractors who has raised invoice on the Appellant. Thus, the E&C charges paid to sub-contractors has direct nexus on the Appellant's business of providing E&C services, thus eligible for CENVAT credit under Rule 2(l) of CCR 2004. 1. Service tax registration cer....
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....not on the entire consideration paid by all the group companies to McKinsey. As regards nexus with production, it is submitted that, Rule 2(l) does not require any direct nexus between the services vis-à-vis the manufactured product. So long as the services are availed towards 'activities relating to business', which is evidently established in the present case as knowing the market trend, having a business plan etc. are crucial to the business of the Appellant, CENVAT credit on the same should be allowed. In this regard, reliance is placed on the decisions noted alongside in this table. In any case, the services also qualify as 'market research' activities are specifically included in the definition of '....
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....eriods viz Sep 2011 to March 2012, and April 2012 to Sep 2012. The average quantum of credit availed in the said subsequent periods corresponds with the monthly average of the credit availed during the period in question (approx. Rs. 30,000 per month). 1. Invoices for the relevant period 2. Adjudication orders for the subsequent periods 3. Invoices for the subsequent periods Mediclaim / Accidental insurance policy for employees - Rs. 97,457/- Order-in-Original: Insurance services are neither in the main definition nor in the inclusive definition. Also, the insurance is not used directly or indirectly in relation to manufacture. Mediclaim policy for employees would be an 'input servic....
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.... 2 ELT 159 - Supreme Court b. Rose Bed Rolls (supra) 8. The learned Authorized Representative (AR) for the Revenue reiterated the findings of Commissioner (Appeals) in the impugned order. 9. Heard both sides and perused the records. 10. The issues involved in this appeal are mentioned at Para 3, supra. As regards the disallowance of availment of Cenvat Credit on the services enlisted at Para 3, supra, I have considered the submissions of the appellant and the case laws relied upon stated at para 6, supra. I find that the demand of Cenvat Credit on these impugned services is not sustainable. Therefore, the confirmed demands are liable to be set aside. Further the appellant has also contended that the invocation of extended ....