Custom, Excise & Service Tax TribunalStyrolution India Pvt Ltd Ineos ... vs Bharuch on 2 December, 2021Customs, Excise & Service Tax Appellate Tribunal\n                 West Zonal Bench At Ahmedabad\n\n                          REGIONAL BENCH- COURT NO. 3\n\n                        Excise Appeal No. 12070 of 2016\n(Arising out of OIO-BHR-EXCUS-000-COM-068-2016-17 Dated- 16/09/2016 passed by\nCommissioner of Central Excise, Customs and Service Tax-Bharuch)\n\nStyrolution India Pvt Ltd Ineos Styrolution India Ltd ........Appellant\nAt & P.O. Dahej,\nTal. Vagra\nBharuch, Gujarat\n\n                                          VERSUS\nC.C.E-Bharuch                                                     ......RespondentR K CASTA SECOND FLOOR, CORPORATE HOUSE, STATION ROAD\nBharuch, Gujarat -392001\n                                           WITH\n\n                        Excise Appeal No. 10987 of 2016\n(Arising out of OIA-BHR-EXCUS-000-COM-058-15-16 Dated- 17/02/2016 passed by\nCommissioner of Central Excise, Customs and Service Tax-Bharuch)\n\nStyrolution India Pvt Ltd                                            ........Appellant\n(Earlier M/S Basf Styrenics Pvt Ltd.) At & Po-Dahej, Tal-Vagra,\nBharuch, Gujarat\n\n                                          VERSUS\nC.C.E-Bharuch                                                      ......Respondent\nR K Casta Second Floor, Corporate House, Station Road\nBharuch, Gujarat- 392001\n\nAPPEARANCE:Shri Willingdon Christian, Advocate for the Appellant\nShri Ghanshyam Soni , Joint Commissioner (AR) and Shri S.N Gohil, Superintendent\n(AR)for the Respondent\n\nCORAM:        HON'BLE MR. RAMESH NAIR, MEMBER (JUDICIAL)\n              HON'BLE MR. RAJU, MEMBER (TECHNICAL)\n\n               Final Order No. A/ 12560-12561 /2021\n\n\n                                                   DATE OF HEARING: 03.08.2021\n                                                  DATE OF DECISION: 02.12.2021\nRAJU\n\n\n       This appeal has been filed by Styrolution India Pvt Ltd against\n\ndisallowance of Cenvat credit on certain services, demand of interest and\n\nimposition of penalty.2.     Learned Counsel for the appellant pointed out that they were issued\n\nSCN seeking to deny Cenvat credit on certain input services. The dispute\n\npertains to the period April 2011 to October 2015. Learned Counsel pointed\n\nout that they have only one manufacturing unit and their marketing office\n 2 | Page                                         E/12070/2016\n                                                  E/10987/2016\n\nis located at Mumbai. He pointed out that some of their services relating to\n\ntheir manufacture are availed at the marketing office located at Mumbai.\n\nLearned Counsel pointed out that the appellant have entered into service\n\nagreement with M/s Styrolution South East Asis Pte. Ltd, Singapore; Intra-\n\nGroup Licence Agreement with M/s Styrolution Group GMBH, and Sub-\n\nContract Agreement with M/s Styrolution Group GMBH, Germany for the\n\nservices received under these agreements the appellant make payment in\n\nforeign currency and also pay service tax thereon under reverse charge as\n\nper service tax law. The appellants availed Cenvat credit on these services.\n\nLearned counsel submitted a table to elaborate the nature of service and the\n\nusage it was put to.2.1   Learned Counsel further relied on the circular No. 943/04/2011-CX\n\ndated 29.04.2011 asserts that there is no necessity of direct use or nexus of\n\ntaxable service with the manufacture and clearance of final product. Learned\n\nCounsel further pointed out that the impugned order relies on the assertion\n\nthat the Mumbai office of the appellant is not registered as input service\n\ndistributor. Learned counsel pointed out that the appellant have only one\n\nmanufacturing division at Dehaj and their marketing office located at\n\nMumbai. He pointed out that in this circumstance that there is only one\n\nfactory and one office there is no need for registration of ISD. He argued\n\nthat normally distribution of Cenvat credit of service tax is made when there\n\nis more than one factory of the same manufacturer. He pointed out that\n\ntribunal in the case of Valco Industries Ltd 2012 (28) STR 457 as held that\n\nbills received at headquarters   can be transferred to appellant factory and\n\nCredit could be taken by the factory based on duty paying documents\n\naddressed to main office, without assessee getting registered       as input\n\nservice distributor.3 | Page                                               E/12070/2016\n                                                        E/10987/2016\n\n2.2        Learned counsel further argued that the SCN bar by limitation. He\n\npointed out that SCN dated 23.02.2016 covers a period from April 2011 to\n\nOctober 2015. He argued that whether the appellants are entitled to cenvat\n\ncredit or not is a question involving interpretation of the       provision of the\n\nCenvat Credit Rules. The appellant had taken credit holding a Bonafide Belief\n\nand therefore no malafide can be attracted. Consequently the extended\n\nperiod of limitation could not have been invoked. He further argued that\n\nthey have been filing returns regularly and everything was in the knowledge.\n\nHe further pointed out that numerous audits have been conducted for\n\ndifferent period:Sr              Date of Audit     Period\n\n      No.\n\n      1      16.03.2009                 Jan. 2008 to Sept.2008\n\n      2      15.02.2010 to 17.02.2010   Jan .2009 to Jan.2010\n\n      3      21.02.2011 to 22.02.2011   Feb. 2010 to Jan.2011\n\n      4      30.01.2012 & 01.02.2012    Feb 2011 to Jan 2012\n\n      5      07.03.2013                 Feb. 2012 to Feb. 2013\n\n      6      September, 2014            CERA Audit\n\n\n\n\n2.3        In the Appeal No E/10987/2016 the issue involved relates to variousservices. In the statement of Shri Minesh Gupta, Manager - Warehousing\n\nand Stores has given following details:Sr.     Credit availed on              Description of the services as\n      No                                     stated by Shri Minesh Gupta1.      HR Administration              These are the expenses related to HR\n              (percentage) services          Administration Department and\n                                             charged on fix management basis. I\n                                             am not aware of that which category\n                                             of the service is covered.2.      HR Department services         These are the expenses related to HR\n                                             Department.3.      HR     Policies   (Percentage) These are the expenses related to HR\n              services                       Policies charged on fixed percentage\n                                             basis.4 | Page                                              E/12070/2016\n                                                       E/10987/20164.    Government             Liasion These are the expenses related to\n         (Percentage) services          liasioning with various Govt Offices &\n                                        charged on fix management basis.5.    Repair & Control (Percentage) These are expenses related to\n         Services                       reporting and controlling. These are\n                                        finance activity6.    External       Communication It is a fix charges incurred for external\n         (Percentage) services.       communication7.    Managing                Director Managing Director was common so his\n         (Percentage) services            expenses were charged to respective\n                                          companies.8.    Accel- Order to services.        M/s Styrolution India Ltd., Dahej had\n                                          taken a project of business promotion\n                                          named as Accelerator. Expenses\n                                          related to this activities were charges\n                                          under this head\n   9     Accounts     &     Management These services are in relation to\n         Information    system     (MIS) finance         activities/matters.  MIS\n         Services                         services        mean        Management\n                                          Information System Services. This is a\n                                          kind     of   financial    report/overall\n                                          business activity.10.   Accounts Pay (Percentage) These are the expenses related to\n         Services                         financial activities charges on a fix\n                                          percentage11.   Accounts Receivable Service      This is an activity in relation to\n                                          collection of outstanding money.\n   12    Business Partner Services        The service provider deputed some\n                                          person for common business activity\n                                          has been called Business Partner\n                                          Services. I am not aware of that\n                                          which category of the service is\n                                          covered. These services are eligible\n                                          for cenvat credit because these\n                                          services are in relation to our\n                                          business so we availed credit for\n                                          service tax. The term in relation to\n                                          business activities was eligible till\n                                          01.04.2011.13    Chairman's Office Services       Chairman is common so his expenses\n                                          were charged to respective\n                                          companies. I am not aware of that\n                                          which category of the service is\n                                          covered\n\n\n\n\n   14    Corporate      Communications Information made available to\n         services                      employees to covered under this\n                                       head. I am not aware of that which\n                                       category of the service is covered.\n 5 | Page                                             E/12070/2016\n                                                      E/10987/2016\n\n                                          These services are eligible for cenvat\n                                          credit because these services are in\n                                          relation to our business so we availed\n                                          credit for service tax. The term in\n                                          relation to business activities was\n                                          eligible till 01.04.2011\n\n   15   Credit Management Service    It is a financial service related to\n                                     credit period for making payment\n   16   Employee       Communication It is a fix charges incurred for\n        (Percentage) Services        communication to employees.\n   17   Facility          Management These are the expenses related to\n        (Percentage) Services        event activity management charged\n                                     on fix management basis\n\n   18   IT APPL HR SAP, IT APPL SAP       These are the services related to\n        (Percentage),    IT     Comm      information technology like SAP\n        (Percentage),   IT    Services,   Software etc.\n        IT/IS    Govern   (Percentage)\n        services\n   19   ITG Automotive services           For the business promotion\n                                          Automotive sector was identified,\n                                          expenses related to these activities\n                                          were charged under this head.20   Office Administration services    The activity related to office\n                                          administration like office management\n                                          and maintenance were charged under\n                                          this head.21   Office Service, office Space      The activities related to office space\n        services                          allocation were charged under this\n                                          head.22   Personal Computer Workplace       These are the activities related to\n        (Percentage) services             Computers like personal computer,\n                                          laptop, printers and software etc,\n                                          charged on fixed percentage.23   Room Supply (Percentage)          These are the expenses related to\n        services                          meeting room/conference hall\n                                          charged on fixed percentage basis.24   Sales Service (Percentage)        These are the activity related to sales\n        services                          and marketing/sales, promotion,\n                                          charged on fixed percentage basis\n\n   25   Sustainable Development           It was a project undertaken by the\n        (Percentage) services             company to improve and maintain\n                                          development on sustainable basis,\n                                          fixed percentage was charged\n\n   26   Technical Procurement             Purchases related to engineering\n 6 | Page                                                 E/12070/2016\n                                                          E/10987/2016\n\n           (Percentage ),Tax                   items like machinery, spare parts, etc.\n                                               fixed percentage was charged.\n      27   Transport Management                Transport management module was\n           Services                            introduced in SAP Expenses related to\n                                               it are charged herewith.28   Treasury (Percentage)               It is a finance activity. Fixed\n           Services                            percentages were charged. He is not\n                                               aware of the service under which\n                                               category this service is covered\n\n\n\n\nIn the said appeal also learned counsel has relied on various case laws to\n\nassert that credit can be availed on various services. This specific nature of\n\neach head of service listed in the table above has not been elaborated.3.     Learned AR relies on the Impugned order.\n\n\n3.1    In the written submission submitted on 06.08.2021 learned AR pointed\n\nthat the submission made by the learned Counsel that they have only one\n\nmanufacturing unit is incorrect. He referred to the CERA Audit Report as\n\nappended by the appellant's in their submission dated 17.09.2019 which\n\nstate as follows:"During test check of records of the assessee, it was noticed that the\n\n       asseessee had availed the credit of service tax on the services received at\n\n       Mumbai from the group company which was paid (service tax) under Rule\n\n       2(i)d(iv) of Service Tax Rules. The ownership of the factory is of M/s\n\n       BASF Germany and M/s Ineos, Germany by 50% each. BASF has six\n\n       companies in India and Ineos has the more than one company as M/s\n\n       Styrolution in Vadodara (appellant)."3.2    It has been further argued that the appellant had not pointed out\n\nwhich input service pertains to their unit. It has been argued in the said\n\nwritten submission that the services were common input services utilized for\n\nall the companies and appellant could have taken credit as per the formula\n\ngiven under Rule 7 of CCR, 2004.7 | Page                                               E/12070/2016\n                                                        E/10987/20164.      We have considered rival submissions. The common issue involved in\n\nboth the appeals is if the appellant were required to take ISD registration for\n\ntheir Mumbai office from which they have transferred the credit. It is seen\n\nthat agreement has been executed between the said assessee and BASF\n\nIndia limited. As per this agreement the service provider has to provide\n\nsupport services      in the areas including accounts, finance, Information\n\nTechnology, personnel Management, Logistic and such other services for 3\n\nyears. As per the agreement effective from 01.01.2011, service provider has\n\nto provide various services viz. Administration, Local IT/IS, Logistic, Finance\n\n&tax, General Management, Environment, Health & Safety, Legal, HR &\n\nCommunication for the said assessee. The service provider in this case was\n\nBASF India limited, Mumbai. It is seen that one of the major shareholders of\n\nthe appellant's company was sharing resources with the appellant and\n\nservice tax was being charged on the shared expenses from the appellant\n\nunder the head of Platform Recovery service. As a result the appellant paid\n\ntax on various shared expenses like HR Administrative Service, HR Policies,\n\nRepair & Control etc.\n\n\n4.1     We find that in respect of appeal No E/1207/2016 the OIO and the\n\nappellant's response have described the exact nature of services being used.\n\nThe details are provided in the tabular form, the said table has been\n\nexamined and the findings are given in the following table:Sr No    Nature of Service.      Usage               and Findings\n                                 requirement           of\n                                 Service1.       Advocate's      Service The Legal services are Legal Services    for Central\n         (Legal Services).       availed            from Excise     matters      are\n                                 Advocates for Central admissible for the purpose\n                                 Excise Matters. Legal of Cenvat credit\n                                 Services are Covered\n                                 under inclusive part of\n                                 definition    of   input\n                                 services.8 | Page                                                    E/12070/2016\n                                                             E/10987/20162.   Chartered                Chartered Accountant Chartered                      Accountant\n     Accountant's services.   services     were          used services for income        tax\n                              for      income       tax     & and           accounts     are\n                              Accounting         matters. specifically covered\n                              Accounting                  and\n                              Auditing are covered\n                              under      the     inclusive\n                              part of definition of\n                              input services3.   Insurance Surveyor's     The        services           of Moreover,    the   case   law\n     Services.                Insurance         surveyors cited by appellant squarely\n                              were        utilised         for covers such services. The\n                              survey report of raw services are in relation to\n                              material required for procurement                   of     raw\n                              production.        Services material                 therefore,\n                              related                       to admissible as credit.Procurement of inputs\n                              are      covered         under\n                              inclusive         part        of\n                              definition       of        Input\n                              services.Judgments :i) 2014 (313) ELT 714\n                              (T)\n\n\n                              CCE         Vs.            India\n                              Cements Ltd.ii) 2015 (40) STR 774\n                              (T) DCW Ltd. Vs. CCE4.   Maintenance or Repair    The              Appellant's The services availed           by\n     Services.                Marketing department Marketing Department are\n                              is located at Mumbai. relates to rules of excisable\n                              The services are used goods               and        therefore\n                              for    upkeep         of     the admissible\n                              office                      and\n                              maintenance                work\n 9 | Page                                                 E/12070/2016\n                                                          E/10987/2016\n\n                            related to office. The\n                            Marketing\n                            Department is looking\n                            after Marketing after\n                            goods       manufactured\n                            by      the   Appellant's\n                            Dehaj      Manufacturing\n                            Division.          Services\n                            related to renovation\n                            or      maintenance        etc\n                            relating to office of\n                            the        factory         are\n                            covered                  under\n                            inclusive         part      of\n                            definition     of        Input\n                            services.5.   Manpower               These      services        are Moreover,    the   case   law\n                            relating to Supply of cited by appellant squarely\n     Recruitment & Supply   Manpower at Factory covers                 such    services.Services.              for various Agency's Supply of manpower                   to\n                            activities    related       to factory     is admissible as\n                            Production                etc.. credit\n                            Services used directly\n                            or indirectly in or in\n                            relation                    to\n                            manufacture                are\n                            covered       under        the\n                            definition        of     input\n                            services.\n\n\n                            Judgement:\n                            2014 (310) ELT 808\n                            (Tri.     Del.)Jaypee\n                            Sidhi     Cement         Plant\n                            Vs. CCE6.   Membership clubs       The      Appellants        are Moreover,    the   case   law\n     Services               member of the Plastic cited by appellant squarely\n                            Manufacturers                    covers such services. The\n                            association.service used in relation toMembership of Plastic manufacture and Marketing\n 10 | P a g e                                                        E/12070/2016\n                                                                    E/10987/2016\n\n                               manufacturers                        and    therefore admissible.association                    is\n                               essential                     for\n                               manufacturer                   of\n                               plastics and therefore\n                               is covered under the\n                               inclusive as well as\n                               main       part        of     the\n                               definition        of        input\n                               service.          In         this\n                               context, the Appellant\n                               rely        upon              the\n                               following judgements\n                               :-\n                               1 2013 (31) STR 68\n                               (T)BCH       Electric         Ltd\n                               Vs.CCE\n                               2. 2015(37) STR 716\n                               (All.)CCE      vs.       HCL\n                               Technologies3.2016(42) STR 332\n                               (T)      Racold        Thermo\n                               Ltd .vs.CCE\n                               2016 (42) STR 494\n                               (T) Hinduja Foundries\n                               Ltd vs. CCE7.     Storage and             Warehousing charges Moreover,                       the    case    law\n       Warehousing Services.   for      storage       of     our cited by appellant squarely\n                               manufactured                goods covers                          such\n                               at     Depot.       As        per services.Services availed up\n                               Section 4 of Central to                    place   of   removal    forExcise       Act,           1944, storage          of     goods    are\n                               Depot       is     place       of admissible services.\n                               removal           and          all\n                               services up to place of\n                               removal are covered\n                               under the definition of\n                               Input services.In this\n                               context, the Appellant\n                               rely        upon              the\n                               following judgements\n                               :\n 11 | P a g eE/12070/2016\n                                                             E/10987/2016\n\n\n\n                            2013 (30) STR 214\n                            (T) Castrol India Ltd.\n                            Vs. CCE.2008 (86) RLT 547\n                            (Cestat) Metro Shoes\n                            Pvt. Ltd. Vs. CCE8      Banking and other    Banking               Service Moreover,      the    case   law\n       Financial Services   relate     to    financing, cited by appellant squarely\n                            Foreign          Exchange covers            such     services.related to import of Services                 related       to\n                            raw      material         and procurement           of     raw\n                            export                      of material are admissible formanufactured goods. credit or service tax.Services        related     to\n                            financing are covered\n                            under      input       service\n                            definition.In this context, the\n                            Appellant       rely     upon\n                            the judgment in case\n                            ofSemco Electric P.\n                            Ltd. Vs. CCEreported\n                            in 2012 (25) STR 73\n                            (T)\n\n\n9      Business Auxiliary   Sales Commission is The Hon'ble High Court of\n       Services             given 10 distributors' Gujarat              in the case of\n                            for      sale      of     our Cadila- 2013 (30) STR 3manufactured goods. has observed that it is not\n                            Sales     promotion         is admissible      for credit of\n                            covered         under     the service tax. Thus the credit\n                            inclusive        part       of is not admissible.definition.      Of     input\n                            services         In       this\n                            context, the Appellant\n                            rely        upon          the\n                            following\n                            Judgments:-\n 12 | P a g e                                             E/12070/2016\n                                                         E/10987/2016\n\n\n\n\n                         (i)2016-TIOL-520-\n                         CESTAT-AHM              Essar\n                         Steel India Ltd. Vs.\n                         CCE\n\n\n                         (ii)   2012      (25)    STR\n                         348 (P&H) CCE Vs.\n                         Ambika Overseas\n\n\n                         iii) CBE&C Instruction\n                         F.       No.96/85/2015-\n                         CX.I dated\n                         07 12.2015\n\n\n10     Online Telecom    Subscription              for The     services     used     inNetwork Service   online data related to relation to procurement of\n                         Chemical           imports. raw material it is therefore\n                         imports           Chemical admissible for credit\n                         data is          useful for\n                         procurement of inputs\n                         therefore          covered\n                         under the definition of\n                         input services.11     Cargo Handling    Services      relating     to Moreover,    the    case     law\n       Services.         Packing                         cited by appellant squarely\n                         charges/labour             for covers such services. These\n                         loading/ unloading of services            are    related    to\n                         office     records        and manufacture                  and\n                         computers for shifting management                   process.\n                         from       our     Mumbai Therefore,            these      are\n                         office      to          Dahej admissible for credit.factory.      Shifting     of\n                         records pertaining to\n                         marketing\n                         Department to factory\n                         is necessary as per\n                         requirement               and\n                         therefore          covered\n                         under      the    inclusive\n 13 | P a g e                                                       E/12070/2016\n                                                                   E/10987/2016\n\n                                part of definition of\n                                input             services.\n                                Without               records,\n                                factory                cannot\n                                function & therefore\n                                the service relate to\n                                production of goods.In this context, the\n                                Appellant       rely     upon\n                                the judgment in case\n                                ofJ.P.         Morgan\n                                Services (I) Pvt. Ltd.\n                                Vs. CSTreported in\n                                2016 (42) S.T.R. 196\n                                (Tri-Mumbai)\n\n\n12     Commercial Coaching      Professional fees for The services are related to\n       and Training Services.   Actuarial Calculations employees                engaged    in\n                                as      per      IAS         19- manufacture and sale of\n                                31.12.2009                         excisable good. The credit\n                                standards.              These is admissible.\n                                services        related       to\n                                accounting of Gratuity\n                                & Leave encashment\n                                of employees working\n                                at   Factory.         This    is\n                                related to Accounting\n                                function.       Accounting\n                                is covered under the\n                                inclusive        part         of\n                                definition       of     input\n                                services.\n\n\n\n\n                                Registration fees have\n                                been          paid           for\n                                programme on day to\n                                day Labour Laws for\n                                Managers. Coaching &\n                                Training are covered\n                                under the definition of\n 14 | P a g e                                              E/12070/2016\n                                                          E/10987/2016\n\n                          input services.\n\n\n\n\n13     IT Services        IT Services related to Services             are        used     for\n                          conversion                 & accounting activity which is\n                          validation      of      XBRL specifically     included in the\n                          files    as     per     MCA definition            of         inputs\n                          guidelines. These are services.             Therefore,         the\n                          accounting            related credit is admissible.\n                          computer             services\n                          and     covered        under\n                          the inclusive part of\n                          definition      of      input\n                          services.\n\n\n14     Courier Services   Courier       Service     for Moreover,       the      case    law\n                          Marketing                       cited by appellant squarelyDepartment. Without covers such services. The\n                          dispatching post etc. services            are        used       for\n                          through               courier marketing and\n                          service the function of sale of excisable                   goods,.\n                          Marketing                  of The    credit     is     therefore,\n                          manufactured           goods admissible.cannot be performed.Therefore,             these\n                          services are covered\n                          under the definition of\n                          input services. In this\n                          context, the Appellant\n                          rely        upon         the\n                          following judgments :\n\n\n                          i) 2013 (30) STR 3\n                          (Guj.)CCE Vs. Cadila\n                          Healthcare Ltd.ii) 2016 (41) STR 990\n                          (T) John Deere India\n                          Pvt. Ltd. Vs. CCEiii) 2016 (6) TMI 161-\n                          Cestat          Sundaram\n 15 | P a g eE/12070/2016\n                                                                E/10987/2016\n\n                              Clayton Ltd.\n                              Vs. CCE15     Taxation Consultancy   Taxation               services Taxation     and         accounting\n       Service.               related to accounting, are               covered          in      the\n                              are covered under the definition                    of         inputs\n                              definition       of       input services.     Therefore,          the\n                              services                          credit is admissible.\n\n\n16     Renting of immovable   These services relate Moreover,                the       case     law\n       property services.     to      Rent      for      our cited by appellant squarely\n                              Marketing         office    at covers        such          services.\n                              Mumbai.              Services Renting        of premises           is\n                              availed        for       office essential     for        marketing\n                              relating to factory are and               rules     of    excisable\n                              covered                  under goods.       The          credit    is\n                              inclusive         part      of therefore, admissible.\n                              definition.        In      this\n                              context, the Appellant\n                              rely        upon           the\n                              following judgements:\n\n\n                              (I)2013 (30) STR 511\n                              (T)                  National\n                              Engineering Inds.Ltd.\n                              Vs. CCEii) 2013 (30) STR 357\n                              (T)     Oracle         Granito\n                              Ltd. Vs.CCE\n\n\n                              iii)   2016      (41)      STR\n                              990 (T) John Deere\n                              India     Pvt.    Ltd.     Vs.\n                              CCE\n\n\n17     Business Auxiliary     Subscription                for Services are in relation to\n       Services               magazine related to marketing                  of    goods        and\n                              Plastic Products These procurement                       of       raw\n                              services         relate     to material. It is admissible as\n                              marketing         of    goods credit.\n                              and     procurement          of\n 16 | P a g e                                                       E/12070/2016\n                                                                   E/10987/2016\n\n                                    inputs, manufacturing\n                                    operations      etc.    and\n                                    are covered under the\n                                    definition      of     input\n                                    services definition.FOREIGN SERVICES - Service tax paid under reverse charge.Sr.   Nature of Service   Usage and requirement of                 Findings\n\nNo                        service\n\n1     Business Auxiliary The      Appellant      have      paid The Hon'ble        High Court of\n\n      Services            Commission      on       export    of Gujarat       in   the    case    of\n\n                          their   manufactured           goods. Cadila- 2013 (30) STR 3\n\n                          Sales promotion is covered has observed                   that it is not\n\n                          under the definition of Input admissible                 for   credit   ofServices. In this context, the service tax. Thus the credit\n\n                          Appellant    rely        upon     the is not admissible.\n\n                          following judgments:-i)2016-TIOL-520-CESTAT-AHM Essar Steel India Ltd.vs. CCE\n\n                          ii)2012 (25) STR 348 (P&H)\n\n                          CCE vs.Ambika Overseas\n\n                          iii)CBE&C Instrcution F No.\n\n                          96/85/2015-         CX    I    dated\n\n                          07.12.2015\n 17 | P a g e                                                        E/12070/2016\n                                                                    E/10987/2016\n\n2.   Business Support Payment            towards         support The services are in relation\n\n     Services              services            related        to to      procurement          of      raw\n\n                           Manpower,       Procurement        of material                    therefore,\n\n                           goods,      Accounting,       Human admissible as credit.\n\n                           Resources            Development,\n\n                           Accounts Payable, Accounts\n\n                           Receivables          and        other\n\n                           services            related        tomanufacturing operations. All\n\n                           these services are covered\n\n                           under the definition of input\n\n                           services.3.   Intellectual          Intellectual Property Rights Moreover, the case law cited\n     Property Services     related to the goods by the by appellant squarely covers\n                           Appellant.      These         services such services. The service is\n                           relate to our manufacturing related               to      right     to     use\n                           operations      and        therefore designs/processes             involved\n                           covered under the definition in manufacture. The credit\n                           of input services.                       is admissible.In this context, the Appellant\n                           rely upon the judgment in\n                           case     of   CST      Vs.     Arvind\n                           Fashions      Ltd.    reported      in\n                           2012 (25) STR 583 (Kar.)\n\n\n4    Online                SAP Application Support. The Moreover, the case law cited\n     Information     and Appellants are availing SAP by appellant squarely covers\n     data base access Services           for    Procurement, such services.\n     or          retrieval sales,     Production,        Quality Services         are    used         for\n     services.             Control, Accounts & Finance, accounting activity which is\n                           &     Inventory       Management specifically             included in the\n                           Maintenance etc. & therefore definition of inputs services.\n                           are      covered       under      the Therefore,        the       credit    is\n                           definition of Input Services.            admissible.\n\n\n                           In this context, the Appellant\n                           rely upon the judgment in\n                           case of Castrol India Ltd. Vs.\n 18 | P a g e                                                  E/12070/2016\n                                                              E/10987/2016\n\n                           CCE reported in 2013 (30)\n                           STR 214 (T).5     Technical Testing Technical testing & Analysis Moreover, the case law cited\n      and         Services of Finished Goods. This is by appellant squarely covers\n      Analysis             required for ensuring quality such services. The services\n                           of manufactured goods and are in relation to quality of\n                           therefore covered under the control of excisable goods.\n                           definition of input services. The     credit   is   therefore,\n                           In this context, the Appellant admissible\n                           rely     upon    the   following\n                           judgments :i)2013    (30)   STR   572   (T)\n                           Semco Electric P. Ltd. Vs.CCEii) 2013 (30) STR 3 (Guj.)CCE Vs. Cadila Healthcare\n                           Ltd.It is seen that appellant has claimed they have only one manufacturing unit.\n\nRevenue has not produced any evidence otherwise. In these circumstances\n\nthere is no need of ISD Registration.4.2    As regard the Appeal No E/10987/2016 it is seen that there is no\n\ncategorical finding of Commissioner on the nature of services and where the\n\nsame    are      used. In the       statement     of Shri Minesh    Gupta Manager,\n\nWarehousing and Stores, he has not clarified where these services have\n\nbeen used and the purpose of availing these input services. The manner of\n\ndistribution of expense on the fixed percentage basis has also not been\n\nelaborated in the order or in the notice. In these circumstances we\n\nconstrained to remand the matter relating to appeal no. E/10987/2016 back\n\nto Adjudicating Authority to give clear finding in respect of each of this\n\nservice disputed for the purpose of Cenvat credit. Appeal No E/10987/2016\n\nis allowed by way of remand to original adjudicating authority for issuing a\n 19 | P a g e                                               E/12070/2016\n                                                           E/10987/2016\n\nspeaking order covering each head of the service tax claimed separately.\n\nThe credit of service tax in respect of appeal No E/12070/2016 is allowed\n\npartially as specified in para 4.1.5.      Appeals are disposed of in above manner.(Pronounced in the open court 02.12.2021)\n\n\n\n\n                                                                 (RAMESH NAIR)\n                                                              MEMBER (JUDICIAL)\n\n\n\n\n                                                                      (RAJU)\n                                                            MEMBER (TECHNICAL)\nGeeta