2023 (11) TMI 408 - AT - Central Excise

Seeking restoration of credit availed under CENVAT Credit Rules 2004 that had been disallowed as ineligible - goods transport agency service for outward transportation up to the place of buyer - outdoor catering service - manpower recruitment and supply agency service - place of removal - Availment of credit of tax paid on charges levied by Mumbai International Airport Ltd in connection with the vending machines and kiosks installed in the airport premises - denied on the ground that the goods themselves are exempt from duty of central excise. HELD THAT - Considering the lack of detailed examination of the submissions of the appellant herein in relation to the several heads on which CENVAT credit was directed to be recovered it would be appropriate for the matter to be decided afresh for which purpose the impugned order set aside and the dispute remanded back to the original authority for fresh determination. Needless to say appellant herein shall be given an opportunity to present their submissions and the adjudicating authority shall thereafter determine the scope and extent of recovery proposed in the show cause notice in terms of settled law and the factual matrix. Appeal allowed by way of remand.

Summary

Issues involved:
The appeal seeks restoration of credit availed under CENVAT Credit Rules, 2004 that had been disallowed as ineligible by the Commissioner of Central Excise, Thane - I.

Eligibility of CENVAT credit on outward transportation services:
The issue of eligibility of CENVAT credit on outward transportation services stands settled prior to 1st March 2008 as per judicial decisions. The demand for the period thereafter is set aside for a fresh determination due to discrepancies in the show cause notices and lack of scrutiny by the original authority.

Eligibility of credit on outdoor catering service:
The extent to which the cost of outdoor catering service has been recovered from employees is in dispute. Despite this not being a ground raised in the show cause notice, the eligibility of credit needs evaluation based on settled law by judicial decisions.

Availment of credit on charges levied by Mumbai International Airport Ltd:
The denial of credit on charges levied by Mumbai International Airport Ltd is justified as the activity pertains to trading, which is an exempt service. The impugned order did not examine the context of the activities undertaken by the appellant and the scope of availability of credit in accordance with CENVAT Credit Rules, 2004.

Remand and fresh determination:
The lack of detailed examination of the submissions by the appellant necessitates a remand of the dispute back to the original authority for fresh determination. The appellant will be given an opportunity to present their submissions, and the adjudicating authority will determine the scope and extent of recovery proposed in the show cause notice in line with settled law and factual matrix. The appeal is allowed by way of remand.