2017 (3) TMI 467

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.... Order Facts of the case are that appellant is a manufacturer and also obtained service tax registration for transportation of goods by road service. During audit, following apparent discrepancies were alleged : (a) Appellant had taken ineligible input credit of Rs. 3,99,300/- on rental charges for cycle stand during the period June 2007 to June 2009. (b) Appellant had taken ineligible cr....

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....11.2015, reported in 2016 (43) STR 267 (Tri.-Chennai), had ruled that there shall not be any denial of cenvat credit in respect of service tax paid to avail catering services for the factory, however the amount to be recovered from employees as cost of catering is to be deducted while extending cenvat credit; that with regard to rental charges of cycle stand, it was held that there is no nexus bet....

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....y on this count. 3. Ld. A.R concedes to the fact of decision of CESTAT Chennai in the appellants own case cites supra, however, submits that identical matter in the case of Commissioner Vs Ultratech Cement Ltd. concerning liability of outdoor catering services used in canteen has been appealed to Hon'ble Supreme Court as reported in 2014 (36) STR J70 (SC). However, in response to a query, Ld. A....

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....lly, in the said Tribunal's decision, while holding that rental charges of cycle stand is not admissible, it was held that penalty is also not imposable for availing credit in respect of such service. 5. Coming to the aspect of penalty imposed to the issue of service tax under reverse charge, appellants have not disputed their liability but are aggrieved only against imposition of penalty. I fi....