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of <h1>Tribunal grants credit for service tax on bringing back 'empty trolleys' for packing final products.</h1> <h3>MADRAS RADIATORS & PRESSINGS LTD. Versus COMMR. OF C. EX., CHENNAI</h3> The Tribunal allowed the appeal, granting credit for the service tax paid on expenses related to bringing back 'empty trolleys' for packing final ... Dissallowance of credit of service tax - Empty trolleys necessary for manufacture and sale of final products - Held that:- The ratio of the following cited two decisions squarely apply to the facts of this case, inasmuch as, in all the three cases, it is the transportation of ‘empty cylinders’ or ‘empty containers’ or ‘empty trolleys’, which are involved and the dispute relates to taking credit of service tax paid on such transportation charges. (i) Kerala Minerals and Metals Ltd. v. Commissioner of Central Excise, Thiruvananthapuram - (2009 (12) TMI 301 - CESTAT, BANGALORE) (ii) Commissioner of Central Excise, Jaipur-II v. Nitin Spinners Ltd. - 2009 (5) TMI 411 - CESTAT, NEW DELHI ) As such, applying the ratio of the cited two decisions, I set aside the impugned order and allow the appeal. Issues: Denial of credit for service tax paid on expenses related to bringing back 'empty trolleys' for packing final products.Analysis:1. Issue of Denial of Credit: The main issue in this case revolves around the denial of credit for service tax paid on expenses related to bringing back 'empty trolleys' necessary for packing the final products. The appellant argued that similar cases where credit was allowed for transportation of 'empty cylinders' and 'empty containers' support their claim for credit in this case as well.2. Arguments of the Appellant: The appellant, represented by Shri S. Kandasamy, contended that previous decisions by the Tribunal, specifically citing cases like Kerala Minerals and Metals Ltd. v. Commissioner of Central Excise and Commissioner of Central Excise, Jaipur-II v. Nitin Spinners Ltd., supported their position. These cases allowed credit for transportation of 'empty cylinders' and 'empty containers' necessary for the manufacture and sale of final products.3. Response of the Respondent: On the other hand, Shri Parmod Kumar, representing the respondent, supported the impugned order and argued that the cited decisions were distinguishable as they dealt with different fact situations. The respondent contended that the cases of 'empty cylinders' and 'empty containers' were not directly comparable to the situation of 'empty trolleys' in this case.4. Decision of the Tribunal: After hearing arguments from both sides, the Tribunal, under the direction of Dr. Chittaranjan Satapathy, J., analyzed the facts and determined that the ratio of the cited decisions applied to the present case. The Tribunal noted that all three cases involved transportation of 'empty cylinders,' 'empty containers,' or 'empty trolleys,' with the dispute centering on taking credit for service tax paid on such transportation charges. Consequently, the Tribunal set aside the impugned order and allowed the appeal, granting credit for the service tax paid on expenses related to bringing back 'empty trolleys' for packing the final products.
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