Appeals Allowed, Order Remanded for Reconsideration

The Appeals challenging the Final Order passed by the Customs, Excise and Service Tax Appellate Tribunal were allowed. The Court remanded the matter back to the Tribunal for a comprehensive reconsideration of the substantial questions of law raised by the Appellant, emphasizing the need for a just and accurate determination in light of the specific circumstances of the case. The Tribunal's failure to adequately address certain questions led to the setting aside of the impugned order, with the remaining questions remitted back for review.

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Issues Involved:
Challenging the Final Order passed by the Customs, Excise and Service Tax Appellate Tribunal, West Zonal Bench, Mumbai in two Appeals under Section 35G of the Central Excise Act, 1944, r/w. Section 83 of the Finance Act, 1994.

Detailed Analysis:

1. Substantial Questions of Law in Central Excise Appeal No.187 of 2015:
The Appellant raised various substantial questions of law regarding the availability of credit of service tax paid on common input services used in manufacturing and trading activities, the correctness of the demand raised without a mechanism for calculating proportionate service tax credit, and the extension of full Cenvat Credit for services directly used for manufacturing activity. The Appellant also questioned the calculation of eligible Cenvat Credit on trading activities and the application of the formula for reversal of Cenvat Credit for the period before 01.04.2011. The Tribunal's reliance on a previous decision without considering the present case's facts and the violation of principles of natural justice were also raised.

2. Substantial Question of Law in Central Excise Appeal No.192 of 2015:
The Appellant questioned the Tribunal's justification in upholding the penalty under Rule 15A of the Cenvat Credit Rules, 2004.

Analysis of the Judgment:
The Appellant's counsel submitted that certain questions were not pressed, while others were not adequately addressed by the Tribunal, necessitating a remand for a fresh decision. Particularly, the Tribunal's reliance on its decision in a previous case involving Mercedes Benz India Private Limited was highlighted, with the Appellant arguing that the findings were inaccurately applied to the present case. The Court had previously set aside the Tribunal's findings in the Mercedes Benz case, leading to a similar remand request in the current Appeals.

The Court acknowledged the interdependence of the questions raised in the Appeals and remanded them back to the Tribunal for fresh consideration. The Tribunal's failure to address question (f) in Appeal No.187 of 2015 adequately led to the setting aside of the impugned order. The remaining questions, except those not pressed, were also remitted back for the Tribunal's review. In consequence, Question (a) in Appeal No.192 of 2015 was also remanded for a fresh decision.

Therefore, the Appeals were allowed, and the matter was remitted back to the Tribunal for a comprehensive reconsideration of the substantial questions of law raised by the Appellant, ensuring a just and accurate determination in light of the specific circumstances of the case.

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