2011 (2) TMI 772

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..... r the appellants company. - A company may meet the cost of maintenance or running expenses of the car of its employee as part of his terms of employment and these expenses would be in the nature of perks to the employee - Cenvat Credit denied - invocation of longer period is justified - As regards penalty, find that the appellant might have availed the credit under a bonafide impression that s .....

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..... ,08,252/- in respect of service tax paid on loading and handling charges, service charges and insurance premium in respect of Porsche Cayenne Turbo Car imported by the appellant. 2. The appellants have contended that the car was being used by the Managing Director of the company in relation to the business activities of the company and as such the same has to be treated as input services. They .....

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..... ty of identical amount. 4. For better appreciation para 5 of Commissioner (Appeals) order is reproduced below: 5. Though the appellants have been projecting that the car had been imported by the company, I find from the copy of the insurance policy that the name of the insured is Shri Gajendra Aggarwal. From this it is clear that the car is owned by the individual, the MD of the appellant .....

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..... d not by the appellant, the services rendered in relation to the car cannot be considered as input services for the appellants company. It would be a different matter if it was Shri Gajendra Aggarwal who was claiming the service tax credit in respect of his own proprietorship of partnership business, but that is not so in the instant case. 6. I find sufficient force in the above reasoning of t .....

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..... egards penalty, I find that the appellant might have availed the credit under a bonafide impression that since the expenses as regards insurance etc. are being born by the company, they are entitled to take the credit. As such by invoking the provisions of Section 80 of the Finance Act, 1994, I extend the benefit of doubt to the appellant and set aside the penalty imposed upon them. The appeal is .....

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