2013 (5) TMI 164 - AT - Central Excise

Denial of credit - Port services - Held that - In respect of credit of port services, the issue is covered by the decision in the case of CCE, Jaipur vs. Hindustan Zinc Ltd. 2012 (12) TMI 105 - CESTAT NEW DELHI whereby the Tribunal after relying upon the earlier decision held against the Revenue. In favour of assessee. Denial of credit - Imposition of penalty - Catering services - Held that - There is no finding in the adjudication order as well as order of Commissioner (Appeals) while denying the credit in this regard. In the case of CCE, Nagpur vs. Ultratech Cement Ltd. reported in 2010 (10) TMI 13 - BOMBAY HIGH COURT Tribunal allowed the credit on catering service. Thus, applicant is not liable for any penalty in this regard.

Summary

Issues:
1. Denial of credit for service tax paid on CHA services and catering services.

Analysis:
The appellant filed an appeal against the denial of credit amounting to Rs.7,64,473/-, with Rs. 7,43,717/- denied for CHA services related to port services and Rs. 2,720/- denied for catering services. The main contention was that the services were utilized in relation to the export of goods and should be eligible for credit. The appellant relied on a Tribunal decision in a similar case against the Revenue. The denial of credit for catering services was also challenged, arguing that there was no specific finding against it and that the services were related to business activities.

The Revenue argued that port services were availed after goods clearance, making them ineligible as input services. They also referred to a Board circular stating that credit is admissible if outward freight is part of the assessable value. Regarding catering services, the lack of evidence linking the services to specific business activities was highlighted.

The Tribunal referred to previous decisions favoring the appellant's position, emphasizing that the place of removal for exported goods was the port, justifying the eligibility for credit on port services. The Tribunal dismissed the Revenue's appeal, upholding the appellant's entitlement to credit for port services. However, the lack of evidence supporting the eligibility of catering services for credit led to the appellant conceding this point during the proceedings. The Tribunal noted that the issue of catering service credit eligibility had been settled in a previous case, absolving the appellant from any penalty in this regard.

In conclusion, the appeal was disposed of with the appellant allowed credit for port services based on previous decisions, while conceding the ineligibility for catering service credit, with no penalty imposed due to the settled nature of the issue in a relevant court case.