2018 (5) TMI 766 - AT - Central Excise

CENVAT credit - input services - rent a cab - insurance premium - maintenance & insurance of motor vehicles - subscription of membership - denial on account of nexus with the manufacture of HDPE woven bags by the appellant - Held that - in respect of the disputed taxable services, this Tribunal in the case of M/s. S.K.D. Lakshmanan Fireworks Industries Versus CE, ST, Tirunelveli 2015 (12) TMI 1102 - CESTAT CHENNAI , has held that the services have no nexus with the manufacture of final product and accordingly, upheld the order passed by the Commissioner (Appeals) - credit not allowed - appeal dismissed - decided against appellant.

Summary

Issues: Denial of Cenvat Credit on taxable services

Analysis:
1. Repeated Adjournments: The appellant sought multiple adjournments, indicating disinterest in pursuing the appeal. The Tribunal, noting this behavior, proceeded with the hearing in the absence of the appellant.

2. Disputed Taxable Services: The denial of Cenvat Credit on taxable services such as rent a cab, insurance premium, maintenance, insurance of motor vehicles, and subscription of membership was the crux of the dispute. The appellant's claim was rejected based on the lack of nexus between these services and the manufacture of HDPE woven bags.

3. Legal Precedent: The Tribunal referred to a previous decision where it was held that services without a connection to the manufacturing process do not qualify for Cenvat Credit. Relying on this precedent, the Tribunal concluded that the denial of Cenvat Credit was justified in the present case.

4. Decision: Finding no merit in the appellant's arguments, the Tribunal upheld the impugned order and dismissed the appeal. The judgment was dictated and pronounced in the open court.

This detailed analysis covers the issues of repeated adjournments, the nature of disputed taxable services, the application of legal precedent, and the final decision of the Tribunal.