Case Law Details
Hindalco Industries Limited Vs Commissioner Of Central Excise (CESTAT Kolkata)
CESTAT Kolkata held that providing operational or administrative assistance in any manner or providing infrastructural support service or managing distribution and logistics service, fall within the ambit of ‘Business Support Service’.
Facts- M/s. Aditya Birla Management Corporation Pvt. Ltd (ABMCPL) provides common facilities to group companies in the area of consultancy, human resources, legal advice, management, logistics, infrastructure support, business strategic planning, research & development, auditing, electronic data processing, travelling, entertainment, etc., in order to achieve economies of scale and allow group companies to specialize. Accordingly, ABMCPL obtained Service Tax registration under the category of ‘Business Support Service’ to be provided to the group companies and duly discharged Service Tax thereon. At the end of each month, ABMCPL issued tax invoices charging its total cost on the group companies in the agreed ratio and collected Service Tax under the head of ‘Business Support Service’ in the tax invoices. The Service Tax collected was duly deposited with the Government and reflected in the periodical returns.
Two Show Cause Notices were issued to the Appellant proposing to deny the CENVAT Credit availed by them on the ground that ABMCPL are not an Input Service Distributor to distribute the service tax paid on BSS to their group companies. The ABMCPL being a distinct person cannot be said to be an office of the Appellant. The said Show Cause Notices were adjudicated wherein the CENVAT credit of Rs 1,99,69,247/- availed by the Appellant was denied along with demanding interest and penalty. The Appellant is before us against this impugned order.
Conclusion- Held that providing operational or administrative assistance in any manner or providing infrastructural support service or managing distribution and logistics service, fall within the ambit of ‘Business Support Service’. The ABMCPL has been providing these services to their group companies. As per the definition of BSS mentioned above, the services rendered by ABMCPL to their group companies would rightly fall under the category of ‘Business Support Service’. We observe that ABMCPL has been rightly paying Service Tax under BSS for the services rendered by them to their group companies. The department has also not disputed the payment of service tax by ABMCPL under the category of BSS.
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