Commissioner Of Customs And Service Tax ... vs Reitzel India Pvt Ltd

[Arising out of Order-in-Appeal No. 204-2010 dated 10/12/2010 passed by CC(Appeals), Bangalore]

For approval and signature:

HON'BLE SHRI B.S.V.MURTHY, TECHNICAL MEMBER

1 Whether Press Reporters may be allowed to see the Order for publication as per Rule 27 of the CESTAT (Procedure) Rules, 1982?

2 Whether it should be released under Rule 27 of the CESTAT (Procedure) Rules, 1982 for publication in any authoritative report or not?

3 Whether Their Lordships wish to see the fair copy of the Order?

4 Whether Order is to be circulated to the Departmental authorities?

Commissioner of Customs and Service Tax BANGALORE-CUS NULL C.R. BUILDING,QUEENS ROAD, P.B.NO. 5400, BANGALORE, - 560001 KARNATAKA Appellant(s)

Versus

REITZEL INDIA PVT LTD NO.98-99, KIADB INDUSTRIAL AREA, ANCHEPALYA VILLAGE, KUNIGAL, TUMKUR DIST 572130 Respondent(s)

Appearance:

Shri Mohd. Yusuf, Addl. Commissioner(AR) For the Appellant

None For the Respondent

Date of Hearing: 01/05/2015

Date of Decision: 01/05/2015

CORAM:

HON'BLE SHRI B.S.V.MURTHY, TECHNICAL MEMBER

Final Order No. 21122 / 2015

Per : B.S.V. MURTHY

The respondent had claimed and received refund of unutilized CENVAT credit for 2008-09 amounting to Rs.40,32,513 comprising of analysis charges, calibration charges, cell phone charges, clearing charges, courier charges, internal audit fee, IT consultancy, labour charges, office maintenance charges, professional and consultancy, repairs &, maintenance, security charges, staff training and transportation charges. The Revenue has appealed against sanction of refund.

2. Against the grounds raised by the Learned Joint Commissioner, Customs (Review) the respondent relied on the following case laws:

a. Comr. of Customs & Central Excise, Hyderabad IV v. Deloitte Tax Service India (P.) Ltd. [(2013) 39 STT 246 (AP)] In this case, the AP High Court held that, equipment hiring charges, professional consultation service, recruitment service, security service, telephone service, transport service, training service, facility operation service, courier service, cafeteria service, advertisement services availed by assessee, a 100 per cent EOU, to provide back office services were input services eligible for credit. It was also held that refund of such input services was admissible under rule 5 of Cenvat Credit Rules, 2004.

b. Comr. of Customs v. Vishal Natural Food Products Bangalore - Final Order No. 382/2011 dated 10/06/2011 of (Tri. - Bang.) [unreported].

In this case, it was held that tax paid on various input services like telephone, professional charges, courier charges, commission paid, clearance & forwarding charges, transportation charges up to place of removal are input services and refundable. This decision was based on ANZ International v. Commissioner of Customs, Bangalore [2008 (224) E.L.T. 573 (Tri. - Bang.)]. ANZ decision was subsequently upheld by Karnataka HC in [2009 (233) E.L.T. 40 (Kar.)], and SLP was dismissed by Honourable Supreme Court. [2009 (240) E.L.T. A16 (S.C.)].

c. In the following cases, it was held that any legal obligation or input services with a direct bearing on manufacturing or activity relating to business or expenses indirectly in relation to manufacture or a business activity for promoting business as the facility to employees like security, advertising, labour supply etc., will result in greater efficiency and is in nexus with the manufacturing process:

a) CCE, B'lore Vs. Stamen Toyotetsu India Pvt. Ltd. [2011 (23) STR444 (Kar-HC)]

b) ITC Limited v. CCE, Hyderabad [(2010) 17 STR 146 (Tri. - Bang)]

c) CCE, Nasik v. Cable Corporation of India Ltd. [2008 (12) STR 598 (Tri.-Mum)]

d) Coca Cola India Pvt. Ltd. v. CCE, 2009 (15) S.T.R. 657 (Bom.)

e) CCE v. Ultratech Cement Ltd. [2010] 29 STT 244 (Bom.)] d. The Division Bench of the Bombay High Court in the Coca Cola India Pvt. Ltd. v. CCE ((2009) 1) STR 657 (Bom.)], held that activities in relation to business cover all activities that are related to the functioning of the business and the expression "relating to", further widens the scope of the expression "activities relating to business". In the absence of any qualifying words like main activity or essential activities, every, all or any activity relating to business would fall within this ambit.

e. It was held that, pest control services and other related services, repairs and maintenance services like AMC of plant related to sewage disposal, AMC of AC in testing rooms, AMC of computers etc., were eligible input services. i. ADC India Communications Ltd. Vs. CCE, Bangalore [(2012) 283 ELT 415 (Tri. Bang.)] ii VST Industries Ltd. Vs. CCE [(2010) 262 ELT 749 (Tri. Bang.)].

3. The submissions above would show that all the services in dispute are covered by the decisions relied upon by the respondent and I find myself in agreement with it and therefore the appeal filed by the Revenue has no merit. Accordingly appeal is rejected. (Operative part of this order pronounced in open court)

B.S.V.MURTHY TECHNICAL MEMBER

Raja.

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