Custom, Excise & Service Tax Tribunal
M/S Paharpur Cooling Towers Ltd vs C.C.E. & S.T. Vadodara-I on 26 March, 2018
In The Customs, Excise & Service Tax Appellate Tribunal
West Zonal Bench At Ahmedabad
Appeal No.E/12057/2017-SM
[Arising out of OIA No. VAD-EXCUS-001-APP-274-2017-18 dated 01.08.2017 passed by Commissioner (Appeals) Vadodara]
M/s Paharpur Cooling Towers Ltd. Appellant
Vs
C.C.E. & S.T. Vadodara-i Respondent
Represented by:
For Appellant: Sh. Dhaval Shah (Advocate) For Respondent: Sh. S.N.Gohil (A.R.) CORAM:
HONBLE DR. D.M. MISRA, MEMBER (JUDICIAL) Date of Hearing/decision:26.03.2018 Final Order No. A/ 10577 /2018 Per: Dr. D.M. Misra:
Heard both the sides.
2. This is an appeal filed against order-in-appeal No. VAD-EXCUS-001-APP-274-2017 passed by the Commissioner of Central Excise (Appeals).
3. At the outset, the Ld. Advocate submits that the issue relates to admissibility of CENVAT Credit of duty paid on input services relating to fabrication/ erection of structurals of machineries. He submits that the appellant in the present appeal does not dispute the rejection of CENVAT Credit of Rs. 35,333/-, which they have already reversed. However, the dispute is on leviability of interest and imposition of penalty. He submits that the credit availed by them has not been utilized, therefore, no interest is payable for extended period in view of the judgment in the case of GPT Steel Industries Ltd. vs CCE & ST Rajkot vide Final Order No. A/10685-10696/2017 dated 31.03.2017. Further he submitted that no penalty is imposable in view of the judgment of the Honble Karnataka High Court in the case of CCE Bangalore vs Flextronics Technologies (India) Pvt. Ltd. 2015 (323) ELT 273 (kar.).
4. Ld. AR for the Revenue reiterated the findings of Ld. Commissioner (Appeals).
5. I find that the appellant had paid the entire amount of service tax availed on input services used for fabrication of structural. The credit pertains to the period February 2012 to March 2012 and the demand has been issued on 24.10.2016. Also, the appellant vehemently argued that there was not suppression of the facts and the entire credit availed by them had not been utilized during the period in question i.e. from February 2012 to December 2012. In these circumstances, following the judgment of this Tribunal in GPT Steel Industries Ltd. vs CCE & ST Rajkot and CCE Bangalore vs Flextronics Technologies (India) Pvt. Ltd. (supra) interest and penalty is not imposable. In the result, the impugned order is modified to the above extent and the appeal is allowed.
(Dictated and pronounced in the open court) (Dr. D.M. Misra) Member (Judicial) Neha 2 | Page E/12057/2017-SM