Custom, Excise & Service Tax Tribunal
M/S. K. K. Nag Ltd vs Commissioner Of Central Excise, ... on 26 December, 2014
CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL SOUTH ZONAL BENCH BANGALORE Final Order No. 22404 / 2014 Application(s) Involved: E/COD/21459/2014 in E/21279/2014-SM E/Stay/21458/2014 in E/21279/2014-SM Appeal(s) Involved: E/21279/2014-SM [Arising out of Order-in-Appeal No.719/2013-CE dated 31/12/2013 passed by Commissioner of Central Excise (Appeals-I), BANGALORE-I (Appeal).] M/s. K. K. Nag Ltd. Survey No. 182/1, Anekal to Attibele Road, Bidaragere Grama, Kasaba Hobli, Basthamana Halli Post, BANGALORE RURAL 562 106. KARNATAKA Appellant(s) Versus Commissioner of Central Excise, Customs and Service Tax Bangalore-I POST BOX NO 5400, CR BUILDINGS, Queens Road, BANGALORE 560 001. KARNATAKA Respondent(s)
Appearance:
Mr. S. R. Madhava Murthy, Consultant For the Appellant Mr. N. Jagadish, Superintendent (AR) For the Respondent CORAM:
HON'BLE SHRI B.S.V.MURTHY, TECHNICAL MEMBER Date of Hearing: 26/12/2014 Date of Decision: 26/12/2014 Order Per : B.S.V.MURTHY The appellant is seeking condonation of delay of 8 days in filing the appeal which happened according to the appellant because the appellant had closed down their business in Bangalore and there was only skeletal staff to attend the work in Bangalore and hence the delay. Since the delay is only of 8 days and explanation given is to satisfactory, the delay is condoned.
2. The facts of the case in brief as explained by the appellant are as under:
The appellant M/s. K. K. Nag Ltd. is engaged in the manufacture of polystyrene products falling under CSH 39231090 and 39211090 of the Central Excise Tariff Act, 1985. The appellant avails credit of duty paid on inputs and capital goods as also credit of service tax paid on input services. The appellant has a job working unit which is housed in premises at No.17, Survey No.122, Jigani Village, Bangalore. The appellant has obtained permission to clear processed finished goods from the job working premises, on payment of duty. The permission was granted by the Assistant Commissioner of Central Excise, Bangalore-III Division, vide his letter C. No.IV/16/18/2006-Tech dated 10.10.2006. This permission was valid up to 31.3.2007. Subsequently, on a further request, the permission granted was extended up to 31.3.2008, by the Assistant Commissioner vide his letter C. No.IV/16/06/2007-Tech dated 18.6.2007. The permission was to clear finished goods, manufactured on job work basis on payment of duty, from the job workers premises. The premises where job work was undertaken was a rented premises where the owner of the premises issued bills of rent charging service tax on the rent. The appellant paid the rent along with service tax charged and availed credit of service tax so paid on the rent. The credit was utilized for payment of Central Excise duty on the finished goods cleared.
3. Show-cause notice was issued alleging that the credit of service tax was not admissible since rent paid was for godown which is used for storing and supply of finished goods to the customers after removal from the factory.
4. After hearing both the sides and going through the records, it was noticed that the premises rented where the appellant was undertaking job work and was clearing the goods, from that premises itself, on payment of duty has not been taken into consideration by the lower authorities at all. If facts as submitted before me are correct, the appellant would be eligible for the benefit of service tax. Since this factual aspect has not been verified and considered the matter has to be remanded at this stage itself. Accordingly, the impugned order is set aside and the matter is remanded to the original adjudicating authority for considering the matter afresh, needless to say that reasonable opportunity shall be given to the appellant to present their case.
(Operative portion of the order has been pronounced in open court) B.S.V.MURTHY TECHNICAL MEMBER rv 3