2018 (6) TMI 1141 - AT - Central Excise

CENVAT credit - various input services - denial of credit on the ground that these services are not utilized in relation to manufacturing of goods - Held that - Since the issue of credit in respect of the services already stands settled in favour of appellant in their own case, and by this Tribunal in various decisions, therefore applying the same ratio, in present appeal also credit is available to the appellant in respect of said services - appellant is eligible for the credit of Service Tax paid on above services - appeal allowed - decided in favor of appellant.

Summary

Issues:
Denial of credit for various services by Commissioner (Appeals- II), Mumbai Zone - II.

Analysis:
The appellant filed an appeal against the Order-in-Appeal dated 05.06.2017, which denied credit for multiple services. The appellant argued that credit for certain services had been allowed in their favor in a previous Tribunal order. The appellant contended that they were eligible for credit for the services used directly or indirectly in their manufacturing, business operations, and sales of goods. The revenue, represented by the Superintendent, argued that since the services were not utilized in relation to manufacturing, the credit was not available.

Upon hearing both parties and examining the facts, it was found that credit for specific services had already been allowed to the appellant in a previous Tribunal order. Therefore, the credit was deemed available for those services in the present appeal as well. For the remaining services, based on the appellant's use of services and previous Tribunal orders, it was determined that the appellant was eligible for credit. A detailed chart was presented showing the use of services by the appellant, along with relevant judgments supporting the eligibility for credit.

The Tribunal considered the use of services by the appellant and the judgments cited, such as Ultratech Cement 2010 (20) S.T.R. 577 (Bom) and Thiru Arooran Sugars Ltd. 2013 (32) S.T.R. 435 (Tri.- Chennai), to establish the eligibility for credit on various services. The Tribunal modified the Order-in-Appeal to allow the cenvat credit on the disputed services based on the judgments and the appellant's utilization of the services. The appeal was allowed in favor of the appellant, and the decision was pronounced in court on 25/05/2018.