Custom, Excise & Service Tax Tribunal
M/S. Tally Solutions Pvt Ltd vs Commissioner Of Central Excise, ... on 5 January, 2017
CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL SOUTH ZONAL BENCH BANGALORE Appeal(s) Involved: E/28011/2013-SM [Arising out of Order-in-Original No. 440/2013-CE dated 30/08/2013 passed by Commissioner of Central Excise, BANGALORE-I (Appeal).] M/s. Tally Solutions Pvt Ltd AMR Tech Park II, No.23 & 24, Hongasandra, BANGALORE. KARNATAKA Appellant(s) Versus Commissioner of Central Excise, Customs and Service Tax Bangalore-I POST BOX NO 5400, CR BUILDINGS, BANGALORE 560 001. KARNATAKA Respondent(s)
Appearance:
Shri Rajesh Kumar, CA HIREGANGE & ASSOCIATES CHARTERED ACCOUNTANTS #1010, 1ST FLOOR, ABOVE CORPORATION BANK 26TH MAIN, 4TH T BLOCK, JAYANAGAR, BANGALORE 560 041 For the Appellant Shri N. Jagadish, AR For the Respondent Date of Hearing: 05/01/2017 Date of Decision: 05/01/2017 CORAM:
HON'BLE SHRI S.S GARG, JUDICIAL MEMBER Final Order No. 20028 / 2017 Per : S.S GARG The present appeal is directed against impugned order dated 30.8.2013 whereby the Commissioner (A) allowed the department appeal and set aside the Order-in-Original passed by the Asst. Commissioner.
2. Briefly the facts of the case are that the appellants are engaged in the manufacture and clearance of excisable goods viz., Tally ERP 9 silver, Tally ERP 9 Gold, Tally ERP 9 Auditors Edition falling under Chapter Subheadings 8523 8020 of Central Excise Tariff Act (CETA), 1985 and were are availing CENVAT credit facility on input and input services and capital goods. During the audit of the accounts of the appellant by the Department, it was observed that they have availed credit of service tax paid on tours and travels. Thereafter a show-cause notice dated 24.11.2010 was issued proposing to recover ineligible CENVAT credit availed by the appellant during the period November 2008 to July 2009. The original authority after following the principles of natural justice, dropped the proceedings in the show-cause notice and allowed the CENVAT credit of service tax paid on tours and travels on the ground that transportation of employees to work place is an essential service and as long as these costs are borne and booked to the business expenditure of the company, they qualify for consideration. Aggrieved by the said order, department filed appeal before the Commissioner (A), who allowed the appeal of the department and set aside the Order-in-Original. Hence the present appeal.
3. Heard both the parties and perused the records.
4. Learned counsel for the appellant submitted that the impugned order is not sustainable in law as the same is passed without considering the definition of input services as well as the decisions rendered by the higher judicial fora. He further submitted that the issue involved in the present case is no more res integra and is covered in favour of the appellant by the following decisions:
i. ABB Ltd. vs. CCE: 2009 (15) STR 23 (Tri.-LB) ii. Semo Electrical Pvt. Ltd. vs. CCE: 2010-TIOL-162-CESTAT-MUM. iii. CCE vs. Stanzen Toyotetsu India P. Ltd.: 2011 (23) STR 444 (Kar.) iv. Bharat Fritz Werner Ltd. vs. CCE, Bangalore: 2011-TIOL-1065-CESTAT-BANG. v. Sundaram Fasteners Ltd. vs. CCE: 2011-TIOL-1050-CESTAT-MAD.
5. Considering the ratios in the above decisions, I am of the view that the issue is squarely covered in favour of the appellant and therefore, I allow the appeal by setting aside the impugned order with consequential relief, if any.
(Operative portion of the Order was pronounced in Open Court on 05/01/2017.) S.S GARG JUDICIAL MEMBER rv 4