2017 (5) TMI 695

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....er Sub Heading No.3923 1090 & 3921 1090 of the First Schedule to Central Excise Tariff Act, 1985 and are also availing benefit of CENVAT credit in terms of Rule 3 of Cenvat Credit Rules, 2004. Upon audit of records of the appellants by the department, it was noticed that they had availed ineligible cenvat credit of service tax charged on the air ticket amounting to Rs. 87/-. It was also noticed that the appellants had availed cenvat credit based on a statement from their Pune office during April 2006 to the tune of Rs. 2,26,729/- for which the appellants could not produce relevant bills/invoices. Further it also appeared that the appellants had suppressed the said facts from the department as the same came to the notice of the department on....

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....ng of final product manufactured by the appellant and such expenses are borne by the company and it has a nexus with the activities related to business. In support of his submission, he relied upon the decision in the case of CCE vs. DCW Ltd. reported in 2011 (22) STR 214 wherein it has been held that air travel service availed and credit of service tax paid on air fare taken was held to be admissible as an input service. Learned counsel further submitted that as far as credit of Rs. 2,26,729/- availed by the appellant is concerned, this credit relates to service tax paid on various services availed by the unit at Bangalore. In certain cases, the services were availed directly for the Bangalore unit under intimation to the corporate office ....