2014 (3) TMI 234 - AT - Central Excise

Denial of credit on rent-a-cab service - Held that - rent-a-cab service was used for providing rent-a-cabs to the staffs/workers to reach the factory premises - However, fact was not examined by both the authorities below and there is no submission in this regard. However, to meet the ends of justice, the respondents should be given opportunity to place these facts before the original authority - matter is remanded back to the original authority to decide afresh - Decided against Revenue.

Summary

Issues:
1. Denial of cenvat credit on catering service under Rule 14 of CENVAT Credit Rules 2004.
2. Denial of cenvat credit on rent-a-cab service.

Analysis:
1. The appeal was filed against the Commissioner (Appeals) order where the adjudication order denying cenvat credit on catering service was set aside. The respondent, engaged in manufacturing Glazed Wall Tiles, availed credit on catering service for providing canteen facilities to over 250 workers as required by the Factories Act, 1948. The original authority denied the credit stating no nexus with finished goods manufacturing. Referring to a Bombay High Court case, it was established that cenvat credit on canteen service is permissible if statutory requirements are met. The Tribunal found the facts similar and remanded the matter to the original authority to consider all submissions and case law before deciding afresh.

2. Regarding denial of cenvat credit on rent-a-cab service used for transporting staff/workers to the factory, the Tribunal agreed with the advocate that this aspect was not examined previously. To ensure justice, the Tribunal remanded the issue back to the original authority for a fresh decision considering all facts and submissions. The Tribunal directed the respondents to present all relevant information, and the original authority was instructed to decide on the matter in light of applicable case law and circulars. The appeal was allowed by remanding the case to the original authority for a comprehensive review and decision-making process.