2013 (8) TMI 647 - AT - Central Excise

Condonation of Delay Application Held that - the Senior Manager had followed up the proceedings before the lower authority and he was sick from 02.02.2012 to 01.03.2012 and appeal was filed on 07.03.2012 The Senior Manager signed the documents before the lower authority and the Appellate Tribunal - Justified to condone the delay Decided in favor of Assessee. Stay Application Waiver of Pre-deposit - Cenvat Credit on Outdoor Catering Service - Outdoor Catering Service used in canteen for employees Relying upon the decision of the Hon ble Bombay High Court in the case of Commissioner of Central Excise, Nagpur Vs Ultratech Cement Ltd. reported in 2010 (10) TMI 13 - BOMBAY HIGH COURT, credit of service tax paid on Outdoor Catering Service allowed as eligible for CENVAT credit Demand waived Stay allowed Decided in favor of Assessee.

Summary

Issues Involved: Condonation of delay in filing appeal, eligibility of CENVAT credit on Outdoor Catering Service.

Condonation of Delay:
The judgment addressed the issue of condonation of delay in filing an appeal due to the sickness of the Senior Manager of the appellant-company. The Senior Manager had been responsible for following up the proceedings and had signed relevant documents. After considering the circumstances and perusing the records, the Tribunal allowed the application for condonation of delay, noting that the delay was justified. The stay application was taken up for further hearing following this decision.

Eligibility of CENVAT Credit on Outdoor Catering Service:
The appellant contested the denial of CENVAT credit on Outdoor Catering Service amounting to Rs.19,36,824. The appellant cited a decision of the Hon'ble Bombay High Court in a similar case, supporting the eligibility of CENVAT credit on such services. The Tribunal observed that the impugned order had not considered the interpretation of the definition of "input service" under the CENVAT Credit Rules, 2004. However, the Tribunal found that the case was prima facie covered by the decision cited by the appellant. It was held that CENVAT credit is indeed eligible for Outdoor Catering Service used in the canteen for employees. The Tribunal decided to waive the predeposit of CENVAT credit along with interest and penalty, staying the recovery until the appeal was disposed of. The stay application was allowed in this regard.

In conclusion, the judgment addressed the issues of condonation of delay in filing the appeal and the eligibility of CENVAT credit on Outdoor Catering Service. The Tribunal allowed the condonation of delay, considering the circumstances of the Senior Manager's sickness. Additionally, the Tribunal found in favor of the appellant regarding the eligibility of CENVAT credit on the mentioned service, citing relevant legal precedents. The decision to waive predeposit and stay recovery until the appeal's disposal was made in light of the findings.