Custom, Excise & Service Tax Tribunal
M/S. Kilburn Chemicals Ltd vs Commissioner Of Central Excise, ... on 27 August, 2015
IN THE CUSTOMS, EXCISE AND SERVICE TAX APPELLATE TRIBUNAL
SOUTH ZONAL BENCH, CHENNAI
E/40191/2013
[Arising out of Order-in-Appeal No.TNL-CEX-000-APP-067-12, dated 16.10.2012 passed by the Commissioner of Central Excise (Appeals), Madurai]
M/s. KILBURN CHEMICALS LTD.
APPELLANT
Versus
COMMISSIONER OF CENTRAL EXCISE, TIRUNELVELI
RESPONDENT
Appearance:
For the Appellant Shri S. Venkatachalam, Adv.
For the Respondent Shri L. Paneerselvan AC (AR) CORAM:
Honble Shri D.N. Panda, Judicial Member Date of hearing/decision 27-08-2015 FINAL ORDER NO. 41103 / 2015 A summary order has been passed by both the authorities below without bifurcating the quantum of Cenvat credit attributable to different input services, if any. It is only recorded that the appellant claims Cenvat credit on Security Services rendered at Guest House of the appellant situated in Kolkatta and Erection and Commissioning Services of two Wind Turbine Generators situated in Sankaran Koil Taluk and Tirunelveli Taluk. Recording that these services were no way connected with the manufacture of the final product of the appellant in respect of the factory situated at Tuticorin, the authorities disallowed the service tax paid on such services. When the authorities fail to bifurcate the quantum of credit attributable to each service that poses difficulty for scrutiny at the higher level. This ground alone is enough to set aside the adjudication. However, inquiry was made into various aspects of the claim. . So far as the Cenvat credit on Security Services on Guest House is concerned that is no way related to manufacture, for which, assessee shall not get the Cenvat credit thereon. So far as Erection and Commissioning Services is concerned, that has a direct bearing on the power generation. Even though the power generated at a place was availed to use the same in the manufacture, that establishes a vital link between input or input service used and manufactured. Accordingly, appellant is entitled to the Cenvat credit on the Erection and Commissioning Services availed.
2. So far as penalty is concerned, in view of the decision above, penalty shall not be levied on the Cenvat credit because the appellant substantially succeeds on the Erection and Commissioning Service. Appellants bonafide belief was that Security Services was part of power generation activity. Noticing no malafide, there shall be no penalty even on this service. Thus, Appeal is allowed to the extent indicated above. (Dictated and pronounced in open court) (D.N. PANDA) JUDICIAL MEMBER ksr 06-09-2015 DRAFT Remarks I II III Date of dictation 27.08.2015 Draft Order - Date of typing 31.08.2015 Fair Order Typing 06.09.2015 Date of number and date of dispatch 07.09.2015 4 E/40191/2013