Services not in the course of business of manufacturing are not entitled to input credit

CESTAT, MUMBAI BENCH

Pfizer Ltd.

Versus

Commissioner of Central Excise, Belapur

ORDER NO. S/22/2012/SMB/C-IV

APPLICATION NO. E/S/1734 OF 2010

APPEAL NO. E/1609 OF 2010-MUM.

FEBRUARY 10, 2012

ORDER

1. The CENVAT credit on following services has been denied to the applicant on the ground that the services are not used in or in relation to their manufacturing activity, therefore the applicant is not covered under Rule 3(1) of the CENVAT Credit Rules, 2004:-

2. After examining the records, I am of the view that the services in relation to Convention services, Memberships of Clubs & Association Services, Health Club & Fitness Centre Services and House Keeping services are not entitled for input service credit. Except the above four services, others are not entitled to take input service credit as has been availed in the course of their business of manufacturing as held by the Hon’ble High Court of Bombay in the case of CCE v. Ultratech Cement Ltd. [2010] 29 STT 244 Therefore the applicants are directed to make a pre-deposit of input service credit availed by them on those four services within four weeks from today and report compliance on 13 th April, 2012. On such compliance, the pre-deposit of balance of dues adjudged against the applicant shall stand waived and recovery thereof stayed during the pendency of the appeal.

NF