9911796707
TMI Blog2008 (6) TMI 72X X X X Extracts X X X X X X X X Extracts X X X X ..... ax for the period 2005-06 and 2006-07. This appeal also challenges penalties imposed on the appellants. The appellants are a PSU, who have obtained the requisite clearance from the 'Committee on Disputes' to pursue these appeals. 2. After examining the records and hearing both sides, we note that the appellants viz. M/s. BSNL are rendering taxable services including telephone service to their subscribers all over India. For rendering such services effectively, they have divided the country into what are called "Secondary Switching Areas" (SSAs, for short). Some of these SSAs coming within the State of Tamilnadu are Salem, Coimbatore, Trichy and Kumbakonam. M/s. BSNL have a Central Stores Department [CSD for short] at Madurai, which caters ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rai purchased the capital goods and at Salem look Cenvat credit thereon under copies of the relevant invoices issued by the manufacturer of the capital goods. In this connection, the learned counsel has referred to the erstwhile Modvat scheme wherein the head office of a company, which purchased capital goods/inputs and supplied the same to their manufacturing units situate elsewhere in the country, under invoices (issued by the manufacturer of capital goods/inputs) endorsed for the purpose by the head office in favour of the manufacturing units. In this connection, reliance has been placed on the Tribunal's decision in TISCO Ltd. v. Commissioner - 2001 (133) E.L.T. 761 (Tri.-Kol.). We have heard the learned SDR also, who reiterates the fin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ), the capital goods purchased by the DGM (Projects), Salem were supplied to Trichy, Coimbatore and Kumbakonam SSAs and Cenvat credit thereon was taken by SSA Salem. These credits totalling to over Rs. 1.10 crores were denied to the appellants on the ground that the SSA which took the benefit did not receive the capital goods and utilize the same in the same SSA. On the premise that this credit was illegally utilized for payment of service tax on output service, the Department also raised demand of service tax on output service to the extent the credit was taken. Both are under challenge in Appeal No. S/134/2007. 5. In this case, it is the submission of the learned counsel that, technologically, the capital goods should be held to have bee ..... X X X X Extracts X X X X X X X X Extracts X X X X
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