Custom, Excise & Service Tax Tribunal
M/S. Murugappa Morgan Thermal Ceramics ... vs Cce, Chennai Iii on 9 November, 2016
IN THE CUSTOMS, EXCISE & SERVICE TAX
APPELLATE TRIBUNAL
SOUTH ZONAL BENCH, CHENNAI
Appeal No. E/41836/2015
(Arising out of Order-in-Appeal No. 108/2015 (CXA-I) dated 18.5.2015 passed by the Commissioner of Central Excise (Appeals I), Chennai)
M/s. Murugappa Morgan Thermal Ceramics Ltd. Appellant
Vs.
CCE, Chennai III Respondent
Appearance Shri M. Kannan, Advocate for the Appellant Shri B. Govindarajan, AC (AR) for the Respondent CORAM Honble Shri D.N. Panda, Judicial Member Date of Hearing / Decision: 09.11.2016 Final Order No. 42146 / 2016 Appellant says that its second unit was a job worker and known to the department in excise record. When the rent was paid for the second unit and service tax on such service availed was claimed, that was denied by Revenue.
2. Heard both sides and perused the records.
3. It does not appeal to common sense how the unit known to law shall be deprived of the service tax of CENVAT credit when expenditure of rent was incurred by principal unit on behalf of the second unit.
4. In absence of any malafide and the service provider as well as service recipient being identified and genuinity not being disputed, appellant is entitled to CENVAT credit.
5. In the result, appeal is allowed.
(Dictated and pronounced in open court) (D.N. Panda) Judicial Member Rex 2