GREAVES COTTON LTD. Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) COMMON issue is involved in these appeals and therefore all are taken up together for disposal.

(2.) THE relevant facts of the case, in brief, are that M/s.Greaves Cotton Ltd. are having two units, namely Petrol Engine Unit (Unit -I) and Diesel Engine Unit (Unit -II). Both the units are situated at difference places, Thoraipakkam (presently at Gummidipoondi) and Ranipet. The present appeals were filed by Unit -I. Five show cause notices were issued proposing to deny cenvat credit availed on input services on advertisement charges on the ground that Unit -I availed service tax credit on advertisement charges which was used in respect of the product manufactured by the other unit. The adjudicating authority by different adjudication orders denied the cenvat credit along with interest and penalty. By the impugned orders, Commissioner (Appeals) rejected the appeals filed by the appellants and upheld the adjudication orders.

(3.) ON the other hand, Ld. Authorized Representative on behalf of Revenue submits that it is well settled by the decisions of the various High Courts and the Tribunal that the expression "relating to business" in Rule 2(l) of Cenvat Credit Rules, 2004 would apply to the activities integrally related to the business activity of the assessee and the credit would be available only if nexus between the relevant services and the business of the assessee is established. In the present case, Unit -I is manufacturing petrol engine and the advertisement for the other unit of diesel engine is of different activity and therefore Unit -I cannot avail the credit in the manufacturing activity of the Unit -II. He relied upon the decision of the Hon'ble High Court as under : -