Custom, Excise & Service Tax Tribunal
Sundaram Clayton Limited vs Cce Chennai-Ii on 22 November, 2019
IN THE CUSTOMS, EXCISE & SERVICE TAX
APPELLATE TRIBUNAL, CHENNAI
REGIONAL BENCH - COURT NO. - III
Excise Appeal No. 42206 of 2015
(Arising out of Order-in-Original No.15/2015 dt.23.07.2015 passed by the
Commissioner of Central Excise, Chennai-II)
M/s.Sundaram Clayton Ltd. Appellant
Die Casting Division
Padi, Chennai 600 050
vs
Commissioner of Central Excise, Respondent
Chennai II Commissionerate, Chennai 600 001.
(i) Excise Appeal No.42191 of 2017 (ii) Excise Appeal No.42192 of 2017 (iii) Excise Appeal No.42193 of 2017 (M/s.Sundaram Clayton Ltd.) (Arising out of Order-in-Appeal No.21-23/2017 (CTA-I) dt. 27.07.2017 passed by the Commissioner of Central Tax (Appeals-I), Chennai) APPEARANCE:
Shri V. Ravindran, Advocate For the Appellant Shri P.Arul C. Durai Raj, Superintendent (AR) For the Respondent CORAM :
Hon'ble Ms. Sulekha Beevi C.S., Member (Judicial) Hon'ble Shri P. Anjani Kumar, Member (Technical) Final Order No. 41413-41416 / 2019 Date of Hearing: 22.11.2019 Date of Decision: 22.11.2019 2 Per P. Anjani Kumar The appellants M/s.Sundaram Clayton Ltd., Chennai are engaged in manufacture of parts of motor vehicles. The appellants availed credit on various inputs and input services. The department has issued show cause notices to the appellants seeking denial of credit availed on certain input services on the premise that they do not have nexus to the manufacturing activity. The appellants were issued four SCNs Nos.77/2014 dt. 23.09.2014, 08/16 dt. 3.2.2016, 15/2016 dt. 29.2.2016 & 22/2016 dt. 29.2.2016 seeking to deny credit availed on input services. Show Cause Notice dt. 23.9.2014 was adjudicated by the Commissioner vide Order-in-Original No.15/2015 dt. 23.07.2015 and other SCNs were adjudicated by Joint Commissioner vide Order No.64 to 67/2016 dt. 30.09.2016 wherein he has dropped most of the demands. On appeals filed by the appellants, the Commissioner (Appeals) vide Orders-in-Appeal No. 21-23/2017 dt. 27.07.2017 had set aside the orders of the Joint Commissioner and has upheld the denial of cenvat credit. Hence appellants have filed these four appeals.
2. In respect of Appeal E/42206/2015, the services which are in dispute are (i) Business Auxiliary Service (ii) BAS (Export of Goods)
(iii) Consulting Engineers (iv) Landscaping services and Warehousing services. The input services which are under dispute in respect of Appeal E/42191/2017 to E/42193/2017 are (i) Housekeeping service
(ii) Fabrication and Boiler Services (iii) Bio Medical Waste Disposal Service (iv) Pest Control used in canteen, welding of canteen tables, 3 servicing of steam boilers. Thus, a total cenvat credit of Rs.73,36,428 + 50,03,454/- is sought to be recovered by these impugned orders.
3. Ld. Counsel for the appellants submitted a table showing inputs wise usage and applicable judgments in respect of such services as follows :
Appeal No.E/42206/2015:
Sl.No. Impugned Usage Covered by Service 1 Business Services of Auxiliary consultants In the Appellant own case OIO 03/2016 dt.
Services located outside 29.01.2016; 64 to 67/2016 dt. 30.09.2016 (Period India were April 2014 - Feb 2016) engaged to enable sale of Turbo Energy Ltd.- 2013 (31) S.T.R.573 (Tri. -
company's Chennai)
products in
Europe and
Korea and to
provide services
to such
customers
abroad, in
respect of such
sale.
2 BAS - Export of Services viz. In the Appellant own case, OIO 03/2016 dt.
Goods Freight 29.01.2016; 64 to 67/2016 dt. 30.09.2016
forwarding and
customs Danmet Chemicals P. Ltd.reported in2013 (30)
clearance S.T.R.308 (Tri. - Mumbai)
activities for
export of their Leela Scottish Lace Pvt. Ltd. reported in2010 (19)
goods S.T.R.69 (Tri. - Bang.)
Rolex Rings P. Ltd.- 2008 (230) E.L.T.569 (Tri. - Ahmd.)
3. Consulting Services of In the Appellant own case OIO 03/2016 dt.29.01.2016;
Engineer foreign 64 to 67/2016 dt.30.09.2016 (Period April 14 to Feb
technical 16)
consultants
were engaged to Castrol India Ltd. - 2013 (291) E.L.T.469 (Tri. -
improve Ahmd.)
operational
efficiency of Shree Bhawani Paper Mills Ltd.-- 2012 (28)
manufacturing S.T.R.409 (Tri. - Del.)
process and
quality of
products
4 Landscaping Statutory Millipore India - 2012 26 S.T.R.514 (HC-Karnataka)
Services obligation to
plant and Brakes India Ltd. -- 2010 (19) S.T.R.524 (Tri.-Bang.)
4
maintain green
cover in the Xomox Sanmar Ltd. - 2010 TIOL 1058-CESTAT-
factory's MAD
premises as per
Section 52A of
the Factories
Act
5 Warehouse Storing of raw In the Rspondent's own case , Sundaram Clayton Ltd.
services materials as - 2016 (42) S.T.R.741 (Tri-Chennai)
well as finished
goods either
before
clearance or
after clearance
Appeal Nos.E/42191-42193/2017 Sl.No. Impugned Usage Covered by Service 1 Housekeeping Services are Indian Oil Corporation Ltd. -
used for 2017 (50) S.T.R.294 (Tri. - Chennai)
maintaining Easun MR Tap Changers P. Ltd. -2017 (47) S.T.R.185
day to day (Tri. - Chennai)
cleanliness Hindustan Petroleum Corpn. Ltd. - 2017 (47) S.T.R.136
and hygiene (Tri. - Hyd.)
within the Godrej & Boyce Mfg. Co. Ltd.- 2017 (48) S.T.R.88 (Tri.
premises of - Chennai)
the appellant Indian Additives Ltd - 2016 (44) S.T.R.611 (Tri. -
Chennai)
Balkrishna Industries Ltd. - 2010 (254) E.L.T.301 (Tri.
- Mumbai) Maruti Suzuki - 2015 (38) S.T.R.503 (Tri. - Del.) Pricol Ltd. - 2016 (41) S.T.R.649 (Tri. - Del.) NTF (India) Pvt Ltd. - 2013 (30) S.T.R.575 (Tri. - Del.) Rotork Control (India) Pvt Ltd. - 2010 (20) S.T.R.684 (Tri. - Chennai) Hindustan Coca Cola Beverages Pvt. Ltd. reported in2017 (49) S.T.R.88 (Tri. - Hyd.) Hindustan Petroleum Corpn. Ltd. reported in2017(47) S.T.R.136 (Tri. - Hyd.) Hinduja Foundries Ltd. reported in2017 (52) S.T.R.190 (Tri. - Chennai) Commissioner of Customs, Delhireported in2015 (39) S.T.R.351 (Tri. - Del.) JaypeeSidhi Cement Plant reported in2014 (310) S.T.R.808 (Tri. - Del.) 2 Fabrication Work Maintaining Hindustan Coca Cola Beverages Pvt. Ltd. - 2017 (49) canteen canteen STR 88 (Tri.-Hyd.) facilities is a statutory requirement as per Section 46 of the Factories Act, 1948
3. Pest control These HPCL 2017 (470 STR 136 (Tri.-Hyd) services are Hinduja Foundries Ltd. 2017 (52) STR 190 (Tri.-
used for Chennai 5 maintaining day to day cleanliness and hygine within the premises of the appellant. 4. Bio-Medical Maintaining Mark Exhaust Systems Ltd. - waste and providing 2015 (39) STR 351 (Tri.-Del.) first-aid facilities is a statutory requirement as per Section 45 of the Factories Act, 1948.
4. Ld. A.R for the department reiterates the findings in OIO in respect of Appeal E/42206/2015 and findings of OIA in respect of other three appeals.
5. Heard both sides and perused the records.
6. On going through the rival submissions, it is seen that the issue raised therein in the impugned orders are no longer res integra. We find that they are covered by the ratio of the cases submitted by the ld.counsel of the appellant. We find that the definition of "input" or "input services" in the CCR is very much wide and as long as the primary conditions like, use of input or input service in or in relation to the manufacture of final products or output service is not disputed, the credit cannot be denied. Moreover, we find that the term „in or in relation‟ is very wide and covers the entire gamut of activities undertaken by the appellants. Therefore, following the ratio of the judgments cited above, we are of the considered opinion that the credit of the same is available to the appellants.
67. In the result, the appeals are allowed with consequential reliefs, if any, as per law.
(Operative part of the order pronounced in court) (SULEKHA BEEVI C.S.) Member (Judicial) (P. ANJANI KUMAR) Member (Technical) gs