2019 (3) TMI 1842 - AT - Central Excise

CENVAT Credit - Hotel Bills - case of appellant is that the hotel stay is for the purpose of business activity by the staff of the company - HELD THAT - It is a recurring issue and periodical demand was raised - This Tribunal in their own case decided the same issue in their favour. Appeal allowed - decided in favor of appellant.

Summary

Issues involved: Restoration of appeal dismissed on monetary limit without considering merit, eligibility of Cenvat Credit on Hotel Bills.

Analysis:

1. Restoration of Appeal: The applicant filed a restoration application as the appeal was dismissed based on a monetary limit without delving into the case's merits. The Ld. Consultant argued that the issue was covered by various judgments, including their own case, and highlighted that the dismissal order was passed ex-parte. Considering the submissions, the dismissal order was recalled, and the appeal was restored in its original number for final disposal.

2. Eligibility of Cenvat Credit on Hotel Bills: The main issue involved in the appeal was the eligibility of Cenvat Credit on Hotel Bills. The Ld. Consultant contended that the hotel stay was for business purposes related to the company's overall business activities. Referring to a previous Tribunal order dated 07.01.2018, where Cenvat Credit on Hotel Accommodation was allowed, the Ld. Consultant argued in favor of granting the credit. On the other hand, the Ld. Superintendent (AR) representing the Revenue reiterated the findings of the impugned order and highlighted the absence of documentary evidence leading to the dismissal of their appeal by the Commissioner (Appeals).

3. Judgment: After hearing both sides and examining the records, the Tribunal noted that the issue of eligibility for Cenvat Credit on Hotel Bills was a recurring one, with a periodical demand raised. Referring to a previous decision of the Tribunal in their own case dated 17.01.2018, where a similar issue was decided in their favor, the Tribunal set aside the impugned order and allowed the appeal. This decision was based on the precedent set by the Tribunal in a similar case, emphasizing consistency in decisions and the relevance of documentary evidence in such matters.

This detailed analysis of the judgment provides a comprehensive understanding of the issues involved, the arguments presented by both parties, and the Tribunal's decision based on legal precedents and factual considerations.