Manufacturer wins appeal on cenvat credit for service tax on staff transportation.

The Tribunal allowed the appeal of a manufacturer of motor vehicle parts regarding the admissibility of cenvat credit for service tax paid on transportation services for staff pick-up and drop. The Tribunal held that the credits were eligible, overturning the Commissioner (Appeals)'s decision to demand payment, interest, and penalties. The Tribunal distinguished the case from a previous Supreme Court ruling and cited a prior decision in the appellant's favor. The impugned order was set aside, granting relief to the appellant.

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Issues involved: Stay petition for waiver of pre-deposit of input service tax credit, interest u/s 11AB of CE Act, 1944, and penalty.

Summary:
The appellant, a manufacturer of motor vehicle parts, availed cenvat credit of service tax paid on transportation services for staff pick-up and drop. Revenue contended the credit was inadmissible as a welfare measure. The Commissioner (Appeals) upheld the demand, interest, and penalties imposed. The appellant cited a Tribunal decision supporting eligibility of such credits. The JDR referenced a different Tribunal decision and the Supreme Court's ruling in Maruti Suzuki. The appellant argued against the applicability of Maruti Suzuki in the case of input services. The Tribunal held in favor of the appellant, citing a previous decision in the appellant's own case where similar credits were deemed eligible. The impugned order was set aside, and the appeal was allowed with consequential relief.

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