Custom, Excise & Service Tax Tribunal
Tema India Limited vs C.C.E, Bharuch on 14 August, 2017
CUSTOMS EXCISE & SERVICE TAX APPELLATE TRIBUNAL, West Zonal Bench, 2nd Floor, Bahumali Bhavan, Asarwa, Ahmedabad Central Excise Appeal No.11745 to 11748 of 2015-SM Arising out of the Order-in-Appeal No.CCESA-VAD (APP-II)/SSP-43 to 46/2015 -16 dated 24.8.2015 by the Commissioner (Appeals), Central Excise & Customs, Surat. Tema India Limited .. Appellants Vs. C.C.E, Bharuch ..Respondent-Revenue
Appearance:
Present Shri V. Kansara, Advocate for the appellants Present Shri N. Satwani, A.R. for the Respondent-Revenue Coram: Honble Dr. D.M. Misra, Member (Judicial) Date of hearing/decision: 14.8.2017 Final Order No. A/11823 - 11826/2017 Per Dr. D.M. Misra:
Heard both sides. The appellant was denied CENVAT credit of Rs.Rs.3,72,382/- during the period October 2008 to September 2013 of the service tax paid on various input service, viz. Banking & Financial services, Consulting Engineers service, professional services i.e. Company Secretary services Chartered Accountants services, EXIM/DGFT consultant service, Installation services, Maintenance and Repair services and Club Membership services.
2. The ld. Advocate for the appellants submits that the said services namely, (i) Banking & Financial services; (ii) Consulting Engineers Service (Drawing charges) (iii) EXIM /DGFT Consultants service(iv) Company Secretary services and C.A. services (v) Installation services, and (vi) Maintenance services are held to be input service in the following decisions of this Tribunal: a)C.C.E., Delhi III vs. Fiamm Minda Automative Ltd. Vs. 2016(43)STR549 (T); b)Castrol India Ltd. vs. C.C.E. , Vapi 2013 (30) STR 214(Tri-Ahmd.); c )C.C.E., vs. Ahmedabad Strips Pvt. Ltd. 2014 (33) STR 291 (Tri-Ahmd.); d); Arm Embeded Tecnologies Pvt. Ltd. Vs. CCE 2016 (45) STR 133(Trb.) e) Doshion Ltd. vs. C.C.E. 2013 (30) STR 240 (Tri) and f) GE India Exports (P) Ltd. vs. C.C.E.,Hyderabad II 2016 (44) STR 693 (Tri.), hence eligible to credit.
3. Ld. A.R. for the Respondent-Revenue reiterated the findings of the ld. Commissioner (Appeals). He has submitted that service tax paid on Club Membership service for the Director cannot be allowed as credit as it has no nexus direct or indirect with the manufacturing activity of the appellant.
4. In his rejoinder, the ld. Advocate for the appellants submits that out of the total credit of Rs.59,438/- (Appeal No.E/11748/2015) on club membership, an amount of Rs.9,998/- relates to Membership of Heat Transfer Researches Inc., and because of their membership, the appellant receive technical know-how assistance, literatures from the said Association, which are used in their manufacturing activity. Therefore, the credit is admissible, on this count.
4. In view of the aforesaid judgments of this Tribunal, the service tax paid on the services viz. Banking & Financial services, Consulting Engineers service (Drawing Charges), EXIM/DGFT Consultants service, Company Secretary service and Chartered Accountants Service, Installation Services, Maintenance Services, which are held to be input services as defined under Rule2(l) of Cenvat Credit Rules, 2004, CENVAT credit of the same is admissible. However, the credit availed on Club Membership for the Director is not admissible as it cannot be said to be remotely connected with the activity of manufacture. However, the service tax paid on membership charges to Heat Transfer Researches Inc., is admissible as the said service is being used in or in relation to manufacture of finished goods. Accordingly, the impugned order is modified by setting aside denial of CENVAT credit on service tax paid on the aforesaid services , except the denial of credit of service tax paid on the Club Membership of the Director, which is upheld. The appeals are disposed of as above.
(Dr. D.M. Misra) Member (Judicial) scd/ E/11745 - 11748/2015-SM 1