2017 (2) TMI 435 - AT - Central Excise

CENVAT credit - Rail and Air Travel Agents Services - conveyance service - whether the appellant had produced sufficient evidences before the Ld. Commissioner (Appeals) in support of their claim that the Rail and Air Travel Agent Service had been received by them and used in or in relation to their manufacturing business activity? - Held that - The documents/evidences now enclosed with the appeal memorandum, according to the appellant, support their claim - the matter needs to be remanded to the Ld. Commissioner (Appeals) for scrutiny of these documents - Appeal allowed by way of remand.

Summary

Issues:
- Admissibility of CENVAT credit on Rail and Air Travel Agents Services
- Non-production of evidences before the authorities below

Analysis:
The appeal in this case was filed against an order passed by the Commissioner (Appeals) of Central Excise, Customs, and Service Tax-VADODARA, regarding the admissibility of CENVAT credit on service tax paid on Rail and Air Travel Agents Services. The appellant had availed the credit during a specific period and was issued a demand notice for recovery, along with interest and penalty. The Ld. Commissioner (Appeals) confirmed the demand and penalty, leading to the present appeal.

The appellant argued that CENVAT credit of Air Travel Agent Service is admissible based on a judgment of the Hon'ble Gujarat High Court. However, the appeal was rejected due to the non-production of evidences before the authorities below. The appellant sought a remand to the Ld. Commissioner (Appeals) to consider the evidences provided in the appeal paper book, which detailed the employees availing the services for office work. On the other hand, the Revenue representative acknowledged the lack of production of documents before the Ld. Commissioner (Appeals) and had no objection to remanding the case.

The key issue to be resolved was whether the appellant had presented sufficient evidences before the Ld. Commissioner (Appeals) to support their claim of receiving and using Rail and Air Travel Agent Services in relation to their manufacturing business activity. The documents now enclosed with the appeal memorandum were deemed by the appellant to substantiate their claim. Consequently, the Tribunal decided to remand the matter to the Ld. Commissioner (Appeals) for a detailed examination of these documents, allowing the appeal by way of remand.