JINDAL PIPES LTD. Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) THE appellant are manufacturers of pipes and tubes.

(2.) Their Head Office is at Gurgaon and their factory is at Ghazipur, UP, which has registration as input service distributor (ISD). During the period from April, 2007 to October, 2008, the appellant unit took Cenvat credit of Rs. 4,38,957/ - in respect of travel agents -services on the basis of invoices issued by the Head Office as input service distributor and Cenvat credit of Rs. 1,49,785/ - in respect of office maintenance same on the basis of invoices issued by the Head Office as input service distributor. There is no dispute that these services had been availed at the head office. While the travel agent's service was used by the officers of the appellant company posted at head office in connection with business activity of the appellant company, the service of office maintenance was availed for the upkeep of the head office of appellant company. The Department was of the view that these services are not covered by the definition of input service, and hence they are not eligible for Cenvat credit. On this basis, after issuance of show cause notice, the jurisdictional Assistant Commissioner confirmed the Cenvat credit demands of Rs. 4,38,957/ - and Rs. 1,49,785/ - along with interest and imposed penalty of equal amount on the appellant company. On appeals being filed to the Commissioner (Appeals), the Commissioner (Appeals) by two separate orders upheld the orders of the Assistant Commissioner, against which these appeals have been filed. Heard both sides.

(3.) SHRI R.K. Mathur, ld. Departmental Representative defended the impugned order by reiterating the finding of the Revenue and emphasised that none of these services are covered by the definition of input service.