Custom, Excise & Service Tax Tribunal
Commissioner Of Central Excise vs Bannari Amman Sugars Ltd on 7 January, 2011
IN THE CUSTOMS, EXCISE AND SERVICE TAX APPELLATE TRIBUNAL
SOUTH ZONAL BENCH AT CHENNAI
Appeal No.E/429/2010
[Arising out of Order-in-Appeal No.39/2010 (SLM) (ST) dated 30.3.2010 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? :
Commissioner of Central Excise,
Salem
Appellant
Versus
Bannari Amman Sugars Ltd.
Respondent
Appearance:
Shri T.H.Rao, SDR Ms.Kamna Shrikanth, Advocate For the Appellant For the Respondent CORAM:
Honble Ms.Jyoti Balasundaram, Vice-President Date of hearing : 07.01.2011 Date of decision : 07.01.2011 Final Order No.____________ Vide the impugned order, Commissioner (Appeals) has held that CENVAT credit of service tax paid is admissible on GTA service relating to coal used for generation of electricity used for staff quarters of the assessee and set aside the interest relatable to the above credit, as well as set aside the penalty.
2. I have heard both sides. Ld. counsel for the assessee does not dispute that credit is not admissible and states that the assessee has reversed the credit. Her only prayer is that this is not a fit case for imposition of penalty.
3. In the light of the decision of the Honble apex court in Maruti Suzuki Ltd. Vs CCE Delhi [2009 (240) ELT 641 (SC)] holding that on account of repeated amendments to the CENVAT Credit Rules, penalty on the assessee is not justified, I hold that penalty on the assessee is not warranted. In the result, the appeal is partly allowed by disallowing credit on GTA service relating to coal used for production of electricity used for staff quarters but upholding the setting aside of penalty.
(Operative part of the order pronounced in open court on 7.1.2011) (JYOTI BALASUNDARAM) VICE-PRESIDENT gs 4