Customs, Excise & Service Tax Appellate ... vs Commissioner Of Central Excise, Ltu, ...

CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL SOUTH ZONAL BENCH BANGALORE Application(s) Involved: E/Stay/27312/2013 in E/26991/2013-DB Appeal(s) Involved: E/26991/2013-DB [Arising out of Order-in-Appeal No. 72/2013 dated 15/03/2013, passed by Commissioner (Appeals), LTU, BANGALORE] For approval and signature: HON'BLE SMT. ARCHANA WADHWA, JUDICIAL MEMBER HON'BLE SHRI ASHOK KUMAR ARYA, TECHNICAL MEMBER 1 Whether Press Reporters may be allowed to see the Order for publication as per Rule 27 of the CESTAT (Procedure) Rules, 1982? No 2 Whether it should be released under Rule 27 of the CESTAT (Procedure) Rules, 1982 for publication in any authoritative report or not? No 3 Whether Their Lordships wish to see the fair copy of the Order? Seen 4 Whether Order is to be circulated to the Departmental authorities? Yes M/s Toyota Kirloskar Motor Pvt. Ltd. Plot No.1, Bidadi Industrial Area, RAMANAGARAM DIST. (Karnataka) VERSUS Appellant(s) Commissioner of Central Excise, LTU, BANGALORE. 100 FT RING ROAD JSS TOWERS, BANASHANKARI-III STAGE, BANGALORE, - 560085 Respondent(s)

Appearance:

Mr. N. Anand, Advocate For the Appellant Mr. N. Jagdish, A.R. For the Respondent Date of Hearing: 30/07/2015 Date of Decision: 30/07/2015 CORAM :

HON'BLE SMT. ARCHANA WADHWA, JUDICIAL MEMBER HON'BLE SHRI ASHOK KUMAR ARYA, TECHNICAL MEMBER Final Order No. 21751 / 2015 PER ARCHANA WADHWA The appellants are engaged in the manufacture of motor vehicles, which are cleared by them on payment of Central Excise duty. Apart from the said activity, they are also doing trading activity wherein they cleared various parts of the motor vehicles. Revenue has entertained a view that the appellants have availed Cenvat credit of service tax paid on various common input services, which stand utilized by them for the trading purpose also, sought to deny the service tax credit of Rs. 44.93 lakhs approximately attributable towards the common input services relating to the trading activity. The same stands confirmed by the lower authorities along with interest and imposition of penalties.

2. After hearing both sides, we find that the issue of availment of Cenvat credit in respect of common input service used for the export of their projects stands considered by the Tribunal in the earlier stay orders being Misc. Order No. 23130/2014 dated 21/11/2014 and Misc. Order No. 23585/2014 dated 26/12/2014 vide which unconditional stay stands granted to the appellants.

3. However, learned A.R. appearing for the Revenue submits that apart from doing the trading activity by way of export, the appellant has, in the present case, also done indigenous trading activity.

On this context, learned advocate submits that input service credit relatable to the trading activities in India already stands reversed by them to the extent of Rs. 6.05 lakhs approximately.

4. In view of the above, we allow the stay petition, by following the earlier Misc. Orders referred to supra, passed in the appellants own case only. We further note that the Commissioner (Appeals) has dismissed the appeal for non-deposit of the directed amount of 50% of the decided dues. Inasmuch as the stay stands granted by the Tribunal, we set aside the impugned order of the Commissioner (Appeals) and remand the matter to him for decision on merits without insisting on any further pre-deposit.

5. Stay petition as also appeal get disposed of in the above manner.

(Pronounced in open court)

(ASHOK KUMAR ARYA) TECHNICAL MEMBER (ARCHANA WADHWA) JUDICIAL MEMBER /vc/