2014 (8) TMI 328 - AT - Central Excise

CENVAT credit - details of the services utilized and the nature of utilization not given to authorities - Held that - Commissioner (Appeals) can hear the appeal on merits without insisting on pre-deposit in view of the decisions cited above. However we make it clear that appellants should cooperate with the Commissioner (Appeals) and produce all the evidences regarding utilization of the credit before him before appearing for the appeal - Matter remanded back - Decided in favour of assessee.

Summary

Issues:
Admissibility of CENVAT credit on various services including canteen services, Medi-claim Insurance, Car rentals, Air Ticketing, Mobile Phones, Residential telephone lines, facsimile, Xerox repair, and Bus transport.

Analysis:
The appellant, engaged in manufacturing automobile parts, faced proceedings over the inadmissibility of CENVAT credit for various services. The Commissioner (Appeals) dismissed their appeal due to non-deposit of the entire CENVAT credit with interest. However, the Tribunal found precedents supporting the admissibility of credit on similar services, citing cases like CCE, Bangalore-III Vs. M/s. StanzenToyotetsu India (P) Ltd. The Tribunal held that the appellant prima facie qualifies for credit on the mentioned services. Despite the appellant's failure to provide details of service utilization earlier, the Commissioner (Appeals) was directed to reconsider the case without insisting on pre-deposit, emphasizing the need for the appellant to cooperate and present evidence of credit utilization.

The Tribunal set aside the impugned order and remanded the matter to the Commissioner (Appeals) for a fresh decision without requiring any pre-deposit, ensuring the appellants have a fair opportunity to present their case. The decision was announced in open court on 23.05.2014.