JINDAL PIPES LTD. Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

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

(2.) In these two cases, the department has denied the credit of service tax paid as the service tax on travelling expenses and facility management services holding that the same could not be treated as input services in relation to the activities undertaken by the applicants. Accordingly the demand along with interest stands confirmed and penalty stands imposed.

(3.) IN respect of credit on service tax on management facility service, he submits that the same related to maintenance of office and maintenance of office is essentially and integrally connected to the manufacturing activity taking place in the factory. He submits that their office is registered as input service distributor and no objection has been raised about the eligibility of credit taken by the office and therefore, denial of credit taken by the factory based on the invoices raised from the office is not correct.