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TMI Blog2012 (4) TMI 134X X X X Extracts X X X X X X X X Extracts X X X X ..... export was held to be the place of removal of the goods exported. It is not deniable that CHA s service was availed by the appellant for export of their goods, which was a part of their business. The requisite nexus between the service and the business of the company stands established. Hence CENVAT credit is admissible on the CHA service to the appellant. Penalty-related issue – Held that:- degree of offence of irregular availment of CENVAT credit will be ascertained only by the original authority pursuant to this order appellant after giving them an opportunity of being heard. - E/1116 & 1117/2010 & E/945/2011 - - - Dated:- 2-3-2012 - SHRI P. G. CHACKO, J. Shri T.M. Subramanian, Advocate for the appellant. Shri R.K. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the relevant period. I am told that the number of employees/workers was less than 250 throughout the material period. The learned counsel for the appellant submits that the cost of supply of food to employees formed a part of the assessable value of the goods manufactured by the appellant as evidenced by certificate of their Chartered Accountant. He has made similar pleading in respect of other services also. As regards outdoor catering service , the learned counsel has also claimed support from the Larger Bench decision in the case of Commissioner vs. GTC Industries Ltd.: 2008 (12) STR 468 (Tri.-LB) wherein one of the conditions laid down for allowing CENVAT credit on outdoor catering service was the cost of food being a part of cost o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tech Cement Ltd. (supra) and para 12 of Stanzen Toyotetsu (supra) are particularly referred to. In his rejoinder, the learned counsel for the appellant refers to Bell Ceramics Ltd. vs. Commissioner: 2011 (21) S.T.R. 417 (Tri.-Bang.) wherein, on the facts of that case, CENVAT credit was allowed to the assessee on outdoor catering services , who employed less than 250 workers. It is argued that the CCR, 2004 do not stipulate any condition related to number of employees for a manufacturer to claim CENVAT credit on outdoor catering service and therefore the benefit is available to the appellant irrespective of the number of employees. 3. I have given careful consideration to the submissions. It is not in dispute that, supply of food was su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tsu case, considered the provisions of the Factories Act in the context of deciding whether there was nexus between outdoor catering service and the business of manufacture of goods. In this scenario, I am constrained to hold that the appellant cannot claim CENVAT credit on outdoor catering service . 4. As regards air travel service and rent-a-cab service , the learned counsel submits that these services were availed in connection with the business of the appellant. The employees of the company made use of these services to travel locally and outside the country for various purposes connected with the business of the company. Therefore, according to the learned counsel, these services would qualify to be input services in terms of Rule ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he place of removal for exports under Section 5 of the Central Excise Act. Learned Commissioner (AR) points out that there are instances of CHAs undertaking activities which are ordinarily outside the ambit of CHA s functions under the CHALR, 2004. It is submitted that, in this case, it is yet to be proved that the service of CHA was availed by the appellant for export of goods. After considering these submissions, I am of the view that there is no dispute regarding the purpose for which CHA service was availed by the appellant. The service was availed for export of goods, a fact recognized by the department inasmuch as the ground raised for denying CENVAT credit on this service is that the port of export was not the place of removal. In th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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