2009 (4) TMI 192 - AT - Service Tax

Availment of Cenvat credit on the Service Tax paid on certain input services - The Commissioner (Appeals) in pursuance of the review order passed the impugned order remanding the matter to the Original Authority and has allowed the appeals of the Revenue. finding in impugned order indicates that Commissioner (Appeals) has travelled beyond the scope of the Revenue s grounds of appeal - Therefore, the order of the Commissioner (Appeals) remanding the matter for fresh decision was set aside - I set aside the impugned order of the Commissioner (Appeals) and allow the appeal.

Summary

Issues:
- Availment of Cenvat credit on Service Tax paid on 'input services'

Analysis:
The appeal in question was filed against the Orders-in-Appeal No. 371 & 372/2008-CE dated 24-11-2008 passed by the Commissioner of Central Excise (Appeals), Bangalore. The issue at hand pertained to the availment of Cenvat credit on the Service Tax paid on certain 'input services'. The Original Authority had initially ruled in favor of the appellants. Subsequently, the Revenue decided to challenge this decision by filing an appeal to the Commissioner (Appeals) under Section 35E (2) of the Central Excise Act, 1944. The Commissioner (Appeals), upon reviewing the order, remanded the matter back to the Original Authority and allowed the appeals of the Revenue. The learned Consultant highlighted specific findings of the Commissioner (Appeals) in the impugned order, indicating that the statutory provisions and circulars referred to by the appellants were not relevant to the issue in question. The Consultant also drew attention to a previous Tribunal decision in Carrier Aircon Ltd. v. C.C.E, New Delhi, where it was held that a review order traveling beyond the record of proceedings before the Adjudicating Authority was not sustainable in law. Drawing parallels with this precedent, the Consultant successfully argued that the Commissioner (Appeals) had exceeded the scope of the Revenue's grounds of appeal, leading to the setting aside of the impugned order and allowing the appeal.

This detailed analysis of the judgment showcases the intricacies involved in the interpretation and application of legal provisions concerning the availment of Cenvat credit on Service Tax paid on specific 'input services'. The case underscores the importance of adhering to the prescribed legal procedures and staying within the scope of the grounds of appeal to ensure a fair and just adjudication process. The reference to relevant precedents and legal principles further enriches the analysis, highlighting the consistency and coherence required in legal decision-making processes.