TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
When case Id is present, search is done only for this
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>Tribunal Overturns Decision, Grants CENVAT Credit for Bus, Canteen, and Professional Services as Manufacturing Inputs.</h1> <h3>M/s. Tata Steel Co. Ltd. Versus Commissioner of Central Excise, Thane-II</h3> M/s. Tata Steel Co. Ltd. Versus Commissioner of Central Excise, Thane-II - TMI Issues involved:Denial of CENVAT Credit along with interest and penalty through adjudication proceeding.Issue 1: Denial of CENVAT CreditThe Appellant, a manufacturer of wire rods, wire ropes, wires, etc., faced denial of CENVAT Credit amounting to Rs. 52,92,917 for the period from August 2007 to July 2011. The Department issued a show-cause notice proposing recovery of the amount along with interest and imposition of penalty. The Commissioner confirmed the proposal, leading to an appeal before the CESTAT. The matter was remanded for de novo adjudication, where the demand, penalty, and interest were re-confirmed without acknowledging a payment of Rs. 60,000 made by the Appellant earlier. The legality of this order was challenged in the current appeal.Issue 2: Interpretation of Services for CENVAT CreditDuring the appeal hearing, the Appellant's Counsel argued that denial of credit for services like bus transportation for employees, renovation of canteen, professional fees, etc., was based on misinterpretation of legal judgments. The Counsel cited various cases where similar services were deemed eligible for CENVAT Credit by the Tribunal and higher courts. The Departmental Representative defended the Commissioner's order, emphasizing that only services integral to the manufacturing process qualify for credit.Judgment:Upon reviewing the submissions, the Tribunal noted that denial of CENVAT Credit on certain services was unjustified. The Commissioner's decision to exclude services like bus transportation, canteen provision, and others, on the basis of lack of statutory obligation or direct connection to the manufacturing process, was deemed incorrect. The Tribunal emphasized that these services, as established in previous rulings, form an integral part of the manufacturing process and are valid input services eligible for credit. Therefore, the appeal was allowed, setting aside the Commissioner's order with any consequential relief.Separate Judgment by Judges:No separate judgment was delivered by the judges in this case.
TaxTMI 