VIKRAM CEMENTS Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) THE appellant are manufacturers of Cement and Clinker chargeable to Central Excise duty. They avail Cenvat credit of the Central Excise duty paid on inputs and capital goods and service tax paid on input services under Cenvat Credit Rules, 2004. The appellant have their head office at Delhi, which is registered as input service distributor and in respect of a number of services received by the appellant company, where the invoices were received at the head office, the head office, as input service distributor, had issued invoices on the basis of which Cenvat credit had been taken by the appellant. The Commissioner of Central Excise, Indore issued a show cause notice dated 6 -1 -2009 to the appellant for recovery of allegedly wrongly taken Cenvat credit amounting to Rs. 2,41,85,937/ - in respect of certain services received by them during the period from January 2008 to September 2008 along -with interest on it at the applicable rate under Section 11AB and also for imposition of penalty on them under Rule 15 of Cenvat Credit Rules, 2004. The above Cenvat credit was sought to be denied on the grounds that -

(2.) Heard both the sides in respect of stay application.

(3.) OUT of total disputed amount of Service tax credit of Rs. 2,41,85,937/ - the Cenvat credit of Rs. 2,30,33,295/ - has been taken on the basis of the invoices issued by the appellant's head office as input service distributor and these invoices are in respect of cargo handling services, advertising agency services/sale of space or time for advertisement, C & F agent's services, business auxiliary services, management, maintenance or repair services, general insurance services, manpower recruitment and supply agency services, telephone and pager services, courier services, scientific or technical consultancy services, technical testing and analysis services, chartered accountant's services etc. The Cenvat credit of the remaining amount of about Rs. 11.52 lakhs is in respect of other services. Out of the services mentioned above, 10 services namely cargo handling services, advertising agency services/sale of space or time for advertisement, clearing and forwarding agent services, business auxiliary services, maintenance and repair services, general insurance services, manpower recruitment and supply agency services, telephone and pager services and courier services account for Cenvat credit of Rs. 2,30,33,295/ -.