RICO CASTINGS LTD. Vs. COMMISSIONER OF C. EX.

JUDGEMENT

(1.) HEARD both sides on the stay petition.

(2.) The applicant, a manufacturer of aluminium castings for parts of motor vehicles availed the services of Kapsons Associate Pvt. Ltd. for the purpose of getting loan from a bank and in that connection, Kapsons Associate Pvt. Ltd. raised invoices on the applicant for the service charge along with service tax under the business auxiliary service. The applicant having arranged funds for their business activities have taken credit of service tax paid by M/s. Kapsons Associate Pvt. Ltd. The original authority denied the service tax credit in respect of this transaction and also few other transactions. The Commissioner (Appeals) upheld the order of the original authority denying the Cenvat credit amounting to Rs. 2,20,320/ - in respect of credit taken on the Service tax paid by M/s. Kapsons Associate Pvt. Ltd. and also upheld the penalty of Rs. 2,20,320/ -.

(3.) LEARNED Advocate for the applicant submits that the loan was arranged using the services of Kapsons Associates Pvt. Ltd. and the loan amount was used in their business activity and the term input service' is wide enough to cover the services utilised by them for the purpose of arranging loan and therefore, the credit taken is regular.