Custom, Excise & Service Tax Tribunal
Hindalco Industries Ltd (Unit -Birla ... vs C.C.E & S.Tax, Bharuch on 5 January, 2018
CUSTOMS EXCISE & SERVICE TAX APPELLATE TRIBUNAL, West Zonal Bench, O-20, NMH Compound Ahmedabad Central Excise Appeal No.11972 of 2017-SM Arising out of the Order-in-Appeal No.VAD-EXCUS-004-APP-052/2017-18 dated 24.4.2017 passed by the Commissioner (Appeals I), C.Ex., Customs & Service Tax, Vadodara. Hindalco Industries Ltd (Unit -Birla Copper) .. Appellant Vs. C.C.E & S.Tax, Bharuch .. Respondent
Appearance:
Present Shri Jigar Shah, Advocate for the Appellant Present Shri A. Mishra, A.R. for the Respondent-Revenue Coram: Honble Mr. M.V. Ravindran, Member (Judicial) Date of hearing/decision :5.1.2018 Final Order No.A/10045/2018 Per M.V. Ravindran:
This Appeal is directed against the Order-in-Appeal No. VAD-EXCUS-004-APP-052/2017-18 dated 24.4.2017 passed by the Commissioner (Appeals I), C.Ex., Customs & Service Tax, Vadodara.
2. Heard both sides and perused the record.
3. On perusal of the record, it transpires that the issue is regarding denial of cenvat credit of service tax paid on the following services namely, -
(i) catering , maintenance and house keeping services provided to guest house;
(ii) wharfage charges; and
(iii) water service by tankers.
4. Revenue is of the view that the services rendered by the service provider of these three services are not in or in relation to the manufacture of the Appellant and hence, would not fall under the category of the definition of input service as envisaged in Rule 2(l) of the Cenvat Credit Rules, 2004, while establishing the claim of the catering and maintenance of guest house, the service provided to guest house is unnecessity as the guest house is situated next to the factory premises and the wharfage charges are for the goods exported from the Port and water supply by tankers is used in the factory premises for control of pollution as the Appellant main manufacture is copper cathode.
5. On a careful consideration of the submissions made by both sides, I find that the ld. Counsel is correct in stating that as regards the service tax liability on the services received at Guest House and the Tribunal in the case of JSW ( SALAV) Ltd. vs. C.C.E. 2016 TIOL 2078 CESTAT MUM has held in favour of the Appellant herein holding that such credit is admissible. As regards this judgment, the ld. A.R. for the Revenue provides a copy of the judgment of this Tribunal in the case of Gujarat Guardian Limited vs. C.C.E., Surat II -2016 (46) STR 737 (Tri-Ahmd.) wherein the services rendered in guest house are not eligible to be availed as cenvat credit. I find that the judgment provided by the ld.A.R. for the Revenue seems to be issue of availment of cenvat credit of the services rendered at the residential colony was only being considered and not at the Guest House. The issue in hand is being respect of input services rendered at guest house having been decided by this Tribunal in the case of JSW Steel (SALAV) Ltd. (supra) and on such services , the cenvat credit is available to the Appellant herein.
6. As regards the cenvat credit of the service tax on the wharfage charges for the goods cleared for export, I find that the Division Bench of this Tribunal in the case of C.C.E., Indore vs. Suraj Impex (India) Pvt. Ltd. 2016 (41) STR 783 (Tri-Del.) has considered that such service tax paid under the port services is eligible to be availed as cenvat credit. There is no dispute in the case in hand that service tax liability has been discharged under the category of port service.
7. As regards the cenvat credit of service tax paid on water supply service rendered by the service provider I find that the explanation given by the ld. Counsel for the Appellant before me was the same as was taken before the lower authorities but the adjudicating authority as well as first appellate authority have not recorded any finding on such claim. In my view, since the cenvat credit of the service tax paid on water supply , such service needs to be considered from the angle for which such service has been used. Without expressing any opinion on this point, the matter is remanded to the adjudicating authority to be considered this issue after following the principle of natural justice.
8. The Appeal stands disposed of as indicated herein above.
(M.V.Ravindran) Member (Judicial) scd/ E/11972/2017-SM 1