Custom, Excise & Service Tax Tribunal
M/S. Force Motors Limited vs Commissioner Of Central Excise, Pune-I on 11 February, 2008
IN THE CUSTOMS, EXCISE AND SERVICE TAX APPELLATE TRIBUNAL WEST ZONAL BENCH AT MUMBAI COURT NO. APPEAL NO. E/80/08-Mum (Arising out of Order-in-Appeal No. PI/BBP/141/07 dated 24.10.2007 passed by the Commissioner (Appeals) Central Excise : Pune-I For approval and signature: Honble Shri A.K. Srivastava, Member (Technical) ============================================================
1. Whether Press Reporters may be allowed to see : No
the Order for publication as per Rule 27 of the
CESTAT (Procedure) Rules, 1982?
2. Whether it should be released under Rule 27 of the : No
CESTAT (Procedure) Rules, 1982 for publication
in any authoritative report or not?
3. Whether Their Lordships wish to see the fair copy : Yes
of the Order?
4. Whether Order is to be circulated to the Departmental : Yes
authorities?
============================================================= M/s. Force Motors Limited :
Appellants VS Commissioner of Central Excise, Pune-I Respondents Appearance Shri R.J. Naidu, Sr. Division Manager for Appellants Dr. T. Tiju Authorized Representative (JDR) CORAM:
Shri A.K. Srivastava, Member (Technical) Date of decision 11/02/2009 ORDER NO.
Per : Shri A.K. Srivastava, Member (Technical) This appeal has been filed by M/s. Force Motors Ltd., Pune against the Order-in-Appeal dated 24.10.2007 passed by the Commissioner (Appeals), Central Excise Pune-I.
2. Heard both the sides and perused the records.
3. The appellants are manufacturer of motor vehicles classifiable under Chapter 87 of the Central Excise Tariff Act. They own and posses two aircrafts, which are used by their employee, and executives for business purposes as the Appellants have two plants one situated at Pune, Maharashtra and the other situated at Pithampur, (near Indore), Madhya Pradesh.
4. The Airports Authority of India, a Statutory Authority, renders various services in connection with the operation of these aircrafts and charges fees alongwith the Service Tax as per the provisions of the Finance Act, 1994.
5. The issue involved in the instant appeal is whether the services such as landing, parking, X-ray, aircraft maintenance etc. rendered by the Airports Authority of India to the Appellants are input service within the meaning of Rule 2(l) of the Cenvat Credit Rules, 2004. The Appellants availed a credit of Rs. 2,43,215/- as cenvat credit during the period January, 2006 to July 2006 for the Service Tax paid to the Authority.
6. I find that the issue about the availment of the Cenvat credit for the Service Tax paid/reimbursed to the Airports Authority of India for availing of the services of Airport Authority of India in connection with the operation of the aircrafts owned by the Appellants is now settled and the Tribunal vide its Final Order No. A/547/08/SMB/C-II dated 11.07.2008 (Appeal No. E/1324/07) has upheld the credit claim of the Appellants. It has been held that the appellants are entitled to take the credit for the Service Tax paid by the Airports Authority of India. The said Order of the Tribunal has been accepted by the Commissioner on 02.09.2008.
7. It was also brought to my notice that the Assistant Commissioner vide his Order-in-Original dated 16.10.2008 has dropped the proceedings initiated against the appellants for the period from April, 2007 to February,2008 on identical issue, following the Tribunals order dated 11.07.2008.
8. Following the ratio of the Tribunals order referred to above, I hold that the impugned order passed by the Commissioner (Appeals) is not sustainable. I set aside the same and allow the appeal.
(Pronounced in court) A.K. Srivastava Member (Technical) Sm 3