SAR ISPAT PVT. LTD. Vs. COMMISSIONER OF CENTRAL EXCISE
LAWS(CE)-2015-1-122
CUSTOMS EXCISE AND GOLD(CONTROL) APPELLATE TRIBUNAL
Decided on January 16,2015

Sar Ispat Pvt. Ltd. Appellant
VERSUS
COMMISSIONER OF CENTRAL EXCISE Respondents

JUDGEMENT

D.N. Panda, Member (J) - (1.)APPLICATION supported by affidavit explains the reason for delay. That is allowed being reasonable, condoning the delay of 62 days in filing the appeal. Appeal is taken up for disposal being on very narrow compass. Learned advocate says that there was denial of Cenvat credit on security services availed for the factory and sales commission paid against Business Auxiliary Service availed. The security services being in accordance with law connected with the provision of the factory and sales promotion being attributable for promoting sales, and the provision of Rule 2(1) of Cenvat Credit Rules, 2004, permits consideration of eligibility of the appellant to the Cenvat credit that may be allowed.
(2.)THE nexus of the expenditure on security services used for the factory and manufacture facility thereat being not possible to be isolated, Rule 2(1) of the Cenvat Credit Rules, 2004 allows Cenvat credit on Service Tax paid to avail such service and sales promotion expenses being attributable to the service availed, input credit of Service Tax paid cannot be denied on the commission paid. Further, the Service Tax paid on the security service availed for protection of factory is admissible for existence of inextricable link between the services and the manufacturing facility for which that was used. Accordingly, appeal is allowed.
(Dictated and pronounced in open Court)

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