Custom, Excise & Service Tax Tribunal
M/S. Lakshmi Machine Works, Unit I vs Cce, Coimbatore on 7 January, 2016
IN THE CUSTOMS, EXCISE & SERVICE TAX
APPELLATE TRIBUNAL
SOUTH ZONAL BENCH, CHENNAI
Appeal No. E/42596/2014
(Arising out of Order-in-Appeal No.166/2014 dated 18.9.2014 passed by the Commissioner of Central Excise (Appeals), Coimbatore)
M/s. Lakshmi Machine Works, Unit I Appellant
Vs.
CCE, Coimbatore Respondent
Appearance Shri A.R. Sreenivasan, Corporate Consultant for the Appellant Shri B. Balamurugan, AC (AR) for the Respondent CORAM Honble Shri D.N. Panda, Judicial Member Date of Hearing / Decision: 07.01.2016 Final Order No. 40042 / 2016 Shri A.R. Sreenivasan, Corporate Consultant of the appellant submits that there is no doubt about the utilization of the service of the CHA for the purpose of manufacture. The input service availed has integral connection to the manufacture and inseparable. But for the defect of appearance of the name of the cargo company which is CHA in the invoice, the appellant was denied CENVAT credit of the service tax paid to avail the CHA which was courier in nature.
2. Revenue supports the adjudication.
3. Heard both sides and perused the records.
4. The basic principle of CENVAT credit being the test of integral connection between the input service and output service or the manufacture, that test was not applied by the adjudicating authority. Learned consultant says that there is an integral connection which is inseparable and indispensable. There is certainly difficulty which is technical in nature as to the appearance of name of the courier company on the invoice. But finding is absent in respect of no utilization of the input service. In all fairness let adjudicating authority examine the utilization of the input service by the appellant for its manufacture and grant appropriate credit if he is satisfied. For this limited purpose, matter is remanded to the adjudicating authority who shall dispose the matter within a month of receipt of this order.
5. In the result, appeal is remanded to the adjudicating authority.
(Dictated and pronounced in open court) (D.N. Panda) Judicial Member Rex 2