There is a denial of CENVAT credit of Rs. 2,00,838.00 and Rs. 61,200.00 out of which, the appellant have already reversed of Rs. 30,600.00. The Learned Advocate submits that they are contesting the demand of the balance amount of Rs. 2,31,438.00. The Adjudicating Authority observed that this service has been utilised for LMC Approval & Audit Work, and Service tax charged on service rendered pertains to Internal Audit conducted on day-to-day operations cannot be said to be used in relation to setting up of the refinery and in relation to manufacture of final products. The Learned Advocate on behalf of the appellant submits that Chartered Accountant Service is included in the definition of input service itself. She further relied upon the decision of the Tribunal as under:-
(a) CCE vs. DRP Malleables Pvt. Ltd. 2014 (33) S.T.R. 521 (Tri-Del)
(b) CCE vs. Andhra Pradesh Paper Mills Ltd. 2010 (254) E.L.T. 354 (Tri.-Bang)
In the case of Commissioner of Central Excise, Ludhiana vs DRP Malleables Pvt. Ltd. (supra), the Tribunal held that Chartered Accountant Service is specifically covered under the scope of input service and the assessee is eligible for availing credit. In my considered view, the Chartered Accountant Service related to day-to-day service cannot be reason for denial of CENVAT credit. So, the appellant is eligible to avail the CENVAT credit of Chartered Accountant Service.
Cenvat Credit Not eligible on security service rendered at the Guest House and Hostels of the appellant
Learned Authorised Representative on behalf of the Revenue submits that the Honble Gujarat High Court in the case of Commissioner of Central Excise & Customs vs. Gujarat Heavy Chemicals Ltd. 2011 (22) S.T.R. 610 (Guj.) denied at input service credit on Security Service provided at residential quarters maintained for workers by the manufacturer. It is held that the act of providing residential quarters by manufacturer, voluntary in nature and has no connection between such service as having direct or indirect relation to manufacture and CENVAT credit would not be available. In the present case, I find that the issue is squarely covered by the decision of the Honble Gujarat High court in the case of Commissioner of Central Excise &Customs vs Gujarat Heavy Chemicals Ltd. (supra) against the assessee. So, the appellant is not eligible input service credit on security service rendered at the Guest House and Hostels of the appellants.
Outdoor Catering Service utilised at the Refinery is within manufacturing premises and therefore,eligible for Cenvat Input credit.
In the case Commissioner of Central Excise, Nagpur vs Ultratech Cement Ltd. 2010 (260) E.L.T. 369 (Bom) the Honble Bombay High Court allowed the CENVAT credit on input service of Outdoor Catering Service subject to the service tax was borne by workers would be reversed. In the present case, the Adjudicating Authority observed that the catering service cannot be said to be utilised directly on indirectly, in or in relation to manufacture of final products. I find that, they have submitted that this service has been utilised for catering services for company Guest House at the Refinery. It is seen that, the Outdoor Catering Service was utilised at the Refinery is within manufacturing premises and therefore, they are eligible to availed credit.
Advertisement Agency services eligible for Cenvat Credit
The Adjudicating Authority denied the CENVAT credit of Rs. 5,508.00 on the ground that Hoarding Board was used outside by the factory. The Learned Advocate relied upon the decision of the Honble Bombay High Court in the case of Cocacola (India) Pvt. Ltd. Vs. Commissioner of Central Excise 2009 (15) S.T.R. 657 (Bom). I find that the Advertisement Service is included in the input service definition. So, the appellant is eligible of the CENVAT credit.