Custom, Excise & Service Tax Tribunal
Cce, Salem vs M/S. Itc Ltd on 4 June, 2010
IN THE CUSTOMS, EXCISE & SERVICE TAX
APPELLATE TRIBUNAL
SOUTH ZONAL BENCH AT CHENNAI
Appeal No. E/499/2009
(Arising out of Order-in-Appeal No. 103/2009-CE (SLM) dated 29.7.2009 passed by the Commissioner of Central Excise (Appeals), Salem)
For approval and signature:
Honble Ms. Jyoti Balasundaram, Vice-President
1. Whether Press Reporters may be allowed to see the Order for Publication as per Rule 27 of the CESTAT (Procedure) Rules, 1982?
2. Whether it should be released under Rule 27 of the CESTAT (Procedure) Rules, 1982 for publication in any authoritative report or not?
3. Whether the Member wishes to see the fair copy of the Order?
4. Whether Order is to be circulated to the Departmental authorities?
CCE, Salem Appellant
Vs.
M/s. ITC Ltd. Respondent
Appearance Shri C. Rangaraju, SDR for the Appellant Shri J. Shankar Raman, Advocate for the Respondent CORAM Honble Ms. Jyoti Balasundaram, Vice-President Date of Hearing: 04.06.2010 Date of Decision: 04.06.2010 Final Order No. ____________ The Revenue is aggrieved by the extension of credit of service tax on the following:-
1. Agricultural work
2. Levelling of children park and tree plantations
3. Construction of toilet in school in the village on the ground that these are not covered by the definition of input service as per Rule 2(l) of the CENVAT Credit Rules, 2004.
2. I have heard both sides. As far as services enumerated at Sl. No. 1 above, where an amount is Rs.46,293/-, I see merit in the submission of the assessee that they are entitled to the credit for the reason that such a service has been held to be an input service in the case of Millipore India Ltd. Vs. CCE 2009 (13) STR 616. I, therefore, hold that the assessees are entitled to credit of service tax paid on agricultural work.
3. As regards the services set out in 2 and 3 above, I agree with the Revenue, by no stretch of imagination can these be considered as input services relating to business of the assessees. I, therefore, disallow credit of Rs.6,940/- and Rs.3,263/-. The appeal is thus party allowed by way of holding that the assessees are entitled to credit of service tax of only Rs.46,293/-. (Dictated and pronounced in open court) (JYOTI BALASUNDARAM) Vice-President Rex ??
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