TaxTMI 
TaxTMI 
2014 (4) TMI 605
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....eligible Cenvat credit taken by the appellant, M/s. Asian Paints Ltd. He has further imposed a penalty of Rs.85,37,779/- under Rule 15 of the Cenvat Credit Rules, 2004 read with Section 11AC of the Central Excise Act, 1944. Aggrieved of the same, the appellant is before us. 3. The Ld. Counsel for the appellant, M/s. Asian Paints Ltd. submits that they are manufacturers of paints, vanishes and thinners falling under Tariff item 32081090 and 32089090 of the First Schedule to the CETA, 1985. They have nine manufacturing units situated at Bhandup, Khandala, Taloja and Turbhe in Maharashtra, Ankleshwar in Gujarat, Patancheru in Andhra Pradesh, Kasna in Uttar Pradesh, Sriperumbudur in Tamilnadu and Rohtak in Haryana. The goods produced by the ....
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....pugned order is not sustainable in law. 3.1 The Ld. Counsel submits that the service on which the credit has been taken broadly falls under 14 categories, namely air travel agent service, rail travel agent service, rent-a-cab service, tour operators service, flub or association service, outdoor catering service, real estate agents service, authorized service station service, general insurance service, hotel stay charges, travel agents service, construction of complex service, dredging service and charges paid for tea and coffee, etc. The travel agents service whether air travel or rail travel and rent-a-cab service have been availed for travel by their employees or their dealers for undertaking business promotion activities and therefore....
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....the credit taken and the nexus between the input service and the manufacturing activity undertaken by the appellant. Accordingly, he prays that stay be granted and the mater remanded back to the adjudicating authority for fresh consideration. 4. The Ld. Commissioner (AR) appearing for the Revenue on the other hand strongly refutes these allegations. He submits that as against the demand of over Rs.59 crore proposed in the show-cause notice, the adjudicating authority has considered and allowed Cenvat credit of about Rs.55 crore to the appellant and denied credit only in respect of an amount of Rs.3.93 crore. The adjudicating authority clearly stated in the adjudication order that he has come to the said conclusion after perusal of the do....
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....g Services 8,755 5.2 Out of the Rs. 3.83 crore credit taken as mentioned above, about Rs.91 lakhs pertains to the period after 01/04/2011 when the definition of input service was amended so as to exclude certain services from the purview of "input service". Therefore, the denial of Cenvat credit on these excluded services, prima facie, appears to be sustainable in law. As regards the balance services, the major amount pertains to 3 or 4 services, namely, air travel agent services, outdoor catering service, rent-a-cab service, tour operator service, and club or association service. These account for Rs.3.64 crore of the total credit taken. As regards, the rent a cab service of Rs.1.81 crore, the adjudicating authority in para....
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.... the adjudicating authority in para 3.7.13 has given a finding that contrary to the claim of the appellant that the catering was for the workers and employees, the invoices issued reveal that the catering was done at a place other than the factory or the office of the appellant and therefore, the contention of the appellant that they were for providing catering to their factory workers stands completely belied. Similarly, in respect of club or association service, the adjudicating authority in para 3.7.5, after going through the various invoices submitted by the appellant, has concluded that these are charges paid to various clubs and association where the appellant's employees are members and no nexus has been established by the appell....