Custom, Excise & Service Tax Tribunal
M/S. Sakthi Sugars Ltd., Unit Iv vs Cce, Salem on 19 February, 2016
IN THE CUSTOMS, EXCISE & SERVICE TAX
APPELLATE TRIBUNAL
SOUTH ZONAL BENCH, CHENNAI
Appeal No. E/41696/2014
(Arising out of Order-in-Appeal No.119/2014-CE dated 22.4.2014 passed by the Commissioner of Central Excise (Appeals), Salem)
M/s. Sakthi Sugars Ltd., Unit IV Appellant
Vs.
CCE, Salem Respondent
Appearance Shri S. Muthuvenkataraman, Advocate for the Appellant Shri K.P. Muralidharan, AC (AR) for the Respondent CORAM Honble Shri D.N. Panda, Judicial Member Date of Hearing / Decision: 19.02.2016 Final Order No. 40300 / 2016 Learned counsel says that the contribution paid to the sugar manufacturers association was claimed by the appellant to have been made towards input service making the appellant eligible to CENVAT credit. Learned Commissioner (Appeals) denied that holding there was neither any input service received by the appellant from the sugar manufacturers association nor there was any nexus with the output for which that contribution doesnt enjoy CENVAT credit.
2. It is very difficult to appreciate the stand of the appellant in absence of relevancy as well as nexus thereof to the output of the appellant. Therefore, learned Commissioner (Appeals) is correct to hold that the contribution of the aforesaid nature does not enable the appellant to claim CENVAT credit. Further, in absence of any statutory provision, no imaginary claim are covered within the fold of the definition of the input service. Therefore, appellant fails to succeed on that count. Therefore, the order of the appellate authority is maintained. However, considering there was no evasive practice adopted by the appellant, there shall be no penalty.
3. In the result, appeal is partly allowed to the extent indicated above.
(Dictated and pronounced in open court) (D.N. Panda) Judicial Member Rex 2