M/S.Orient Paper Mills vs Cce, Bhopal
- CitationExcise Appeal No.E/53931, 53933 & 53934/2014 EX. [SM]
Ratio decidendi
The rule this decision rests on
The question is whether service tax paid on rent-a-cab service, used by the appellant for transporting its employees, is an input service for which Cenvat credit may be availed under the Cenvat Credit Rules, 2004, notwithstanding that such service is neither used in or in relation to the manufacture or clearance of the final product nor listed in the inclusive part of the definition of input service in Rule 2(l). Cenvat credit on service tax paid on rent-a-cab service used for transportation of employees is admissible as input service, and the absence of that service from the inclusive clause of Rule 2(l) does not by itself bar the credit where the service is used by the manufacturer for the transportation of its employees.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
[Arising out of Order-in-Appeal No.BPL-EXCUS-000-APP-189, 191 & 188 13-14 dated 07.01.2014 passed by the Commissioner (Appeals), Customs & Central Excise, Bhopal]
For approval and signature:
HONBLE MR. S.K. MOHANTY, MEMBER (JUDICIAL)
1. Whether Press reporters may be allowed to see the
order for publication as per Rule 27 of the CESTAT
(Procedure) Rules, 1982?
2. Whether it should be released under Rule 27 of the
CESTAT (Procedure) Rules, 1982 for publication in
any authoritative report or not?
3. Whether Their Lordships wish to see the fair copy
of the Order?
4. Whether Order is to be circulated to the Departmental
authorities?
__________________________________________________
M/s.Orient Paper Mills Appellant
Vs.
CCE, Bhopal Respondent
Present for the Appellant :Ms. Priyanka Goyal, Advocate
Present for the Respondent: Shri G.R. Singh, D.R.
Coram: HONBLE MR. S.K. MOHANTY, MEMBER (JUDICIAL)
Date of Hearing/Decision: 25.05.2015
FINAL ORDER NO. 53019-53021/2015
PER: S.K. MOHANTY
These appeals are directed against the impugned order dated 07.01.2014 passed by the Commissioner (Appeals) Central Excise, Bhopal, wherein Cenvat Credit taken on the service tax paid on the taxable service i.e. rent-a-cab service has been denied on the ground that the said services is neither used in or in relation to manufacture/ clearance of the final product, nor mentioned in the inclusive clause of the definition of input service, contained in Rule 2 (l) of the Cenvat Credit Rules, 2004.
2. Heard both the sides and perused the records.
3. I find that the rent-a-cab service has been used/utilized by the appellant for transportation of its employees, which according to the decision of Tribunal in the case of Nash Industries vs. Commissioner of Cus. & S.T., Bangalore reported in 2015 (37) STR 1060 (Tri.- Bang.) is eligible for cenvat credit.
4. In view of the above, I am of the opinion that the appellant is eligible for cenvat credit of service tax paid on rent-a-cab service and, accordingly, I set aside the impugned order passed by the Commissioner (Appeals). The appeal is allowed.
(Dictated and pronounced in the open Court)
(S.K. MOHANTY)
MEMBER (JUDICIAL)
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