Goods and Services Tax

Bharat Heavy Electricals Ltd Versus Commissioner of Central Tax (Appeals-II) CGST & Central Excise, Chennai

2018 (12) TMI 438 – CESTAT CHENNAI – TMI – CENVAT Credit – various input services – denial on account of nexus – Air Travel Agent / Rail travel Agent Services – Cable operator services – Convention service – Membership service – Erection commission/installation service – Civil works services/Repairs and maintenance – Designing and printing services – Cleaning services/Housekeeping – Sponsorship services – Finance Lease services – Accommodation services.

Air travel agent / rail travel agency service – cable operator service – convention service – erection, commission and installation service – designing and printing service – cleaning service / housekeeping – sponsorship service – finance lease service – Held that:- The credit availed on air travel agent / rail travel agency service, cable operator service, convention service, erection, commission and installation service, designing and printing service, cleaning service / housekeeping, sponsorship service and finance lease s

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d for official purposes only – the accommodation service also requires to be remanded to the adjudicating authority – matter on remand.

Appeal allowed in part and part matter on remand. – Appeal No. E/40788/2018 – FINAL ORDER No. 42996/2018 – Dated:- 5-12-2018 – Ms. Sulekha Beevi C.S., Member (Judicial) Ms. S. Sridevi, Advocate For the Appellant Shri L. Nandakumar, AC (AR) For the Respondent ORDER The issue involved in this appeal is with regard to the disallowance of Cenvat Credit on various services. 2. The Ld. Advocate, Ms. S. Sridevi appearing for the appellant submitted that the department has denied the credit alleging that it is not established that the services on which credit has been availed on the basis of ISD invoices have been used directly or indirectly in or in relation to manufacture and clearance of final products. She submitted that the details of the services availed and the nexus with the manufacturing activity alongwith the decisions which related to the said

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1) STR 443 (Tri Hyd) 5 Erection commission/installation service For installation of servers, generators, ups and other equipments GE India technology Centre-2014-TIOL-1931-CESTAT-BANG Orient Cement Ltd., – 2017 (51) STR 459 (Tri Hyd) 6 Civil works services/Repairs and maintenance Used for repairs/modernization and maintenance of office building Zydus Nycomed Healthcare 2013 (3) STR 197 (Tri Mum); 7 Designing and printing services Printing of tender docs/in house journals etc., Ultratech Cements Ltd., vs CCE., Jaipur – 2015 (40) STR 523 (Tri Del) 8 Cleaning services/Housekeeping For maintaining the office Xlinx India Tech – 2016 (44) STR 635 (Tri Hyd); CCE., vs Maruthi Suzuki – 2015 (38) STR 503 (Tri Del) 9 Sponsorship services Publication of booklet, banner and conductive events in relation to business development etc., Xlinx India Tech – 2016 (44) STR 635 (Tri Hyd.) 10 Finance Lease services / Purchase of computers/printers etc., on finance lease for execution of day to day routines.

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ssues were considered by the Tribunal in Xilinx India Tech. Services Pvt. Ltd. Vs CC., CE. & ST., Hyderabad-IV 2016 (44) S.T.R.635 (tri. – Hyd.). Following the said decision, I hold that the credit availed on the above services are legal and proper. The disallowance being unjustified, is set aside. 6. The Ld.Counsel for the appellant has produced the invoices relating to the services availed on membership fees. It is submitted by her that the appellant company had to take membership in Associated Chamber of Commerce and Industry of India. This is to enable the company to have connections with similar persons in the very same field of commerce and industry. This helps to develop the business and also to get updated with the trends in the industry and is therefore related to the activity of manufacture. It is not for personal membership in a Club. Similarly the appellant has taken membership in spending on conference of public enterprises. The Invoice is raised in the name of the com

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of various services. In para 8.4 of the Order in Original it is mentioned that works contract services as well as civil works services are disallowed. It is not possible to make out from the SCN or the order as to the services which come under works contract service and civil works services. This aspect needs to be reconsidered. Therefore this issue with respect to credit availed on works contract service / civil works service / repair and maintenance of xerox machine is remanded to the adjudicating authority. 8. So also the appellant contends that the accommodation services are availed for hotel accommodation for the employees who are on official duty. The appellant has to establish with necessary documents that the accommodation was availed for official purposes only. The Counsel for appellant submitted that the appellant would be able to furnish documents to establish that this was availed for official purposes only. For this reason, I hold that the accommodation service also requir

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