Custom, Excise & Service Tax Tribunal
Ford Motor Private Limited vs Commissioner Of Gst&Amp;Cce(Chennai ... on 13 June, 2018
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IN THE CUSTOMS, EXCISE AND SERVICE TAX
APPELLATE TRIBUNAL
SOUTH ZONAL BENCH AT CHENNAI
Appeal Nos. ST/40572,40573/2018
(Arising out of Order-in-Appeal No. 152/2017 (CTA-II) dated
31.10.2017 passed by the Commissioner (Appeals-II), Chennai)
M/s. Ford Motor Pvt. Ltd. : Appellant
Vs.
Commissioner of G.S.T. & C.C.E., : Respondent
(Chennai Outer) Appearance:-
Ms. Krithika Jaganathan, Advocate for the Appellant Shri B. Balamurugan, AC (AR) for the Respondent CORAM:
Hon'ble Ms. Sulekha Beevi C.S., Member (Judicial) Date of Hearing/Decision:13.06.2018 Final Order No. 41793-41794 / 2018 Brief facts are that the appellants were issued Show Cause Notice proposing to disallow the credit on service tax paid for various input services for the period February, 2008 to March, 2011. After due process of law, the original authority disallowed the credit on certain services against which the appellants preferred appeal before the Commissioner (Appeals). Vide order impugned herein, the Commissioner (Appeals) disallowed the credit in respect of outdoor catering services, business auxiliary services (Sodexo pass for 2 employees), group insurance services, furniture hire services. Aggrieved, the appellants are now before the Tribunal.
2. The learned Counsel, Ms. Krithika Jaganathan, appearing for the appellant, submitted that the period of dispute is prior to 01.04.2011, when the definition of input services included the words 'activities relating to business'. The Tribunals as well as High Courts in various decisions have held that the impugned services are eligible for credit. She submitted that the larger Bench of the Tribunal, in the case of C.C.E. Mumbai Vs. GTC Industries Ltd.,-2008 (12) S.T.R. 468 (Tri.-LB) held that outdoor catering services are eligible for credit. The issue whether credit is eligible on Sodexo passes, issued to employees for meals, was held in favour of assessee by the Tribunal in the case of Commissioner of Service Tax, Bangalore Vs. Yodlee Infotech (P) Ltd.; 2015 (39) S.T.R. 695 (Tri.-Bang.) and Principal Commissioner of Service Tax, Bangalore Vs. Maa Communications Bozel Ltd.; 2018 (3) T.M.I. 995 - CESTAT Bangalore. She relied upon the decision in the case of C.C.E. Bangalore Vs. Stanzen Toyetsu India (P) Ltd.,- 2011 (23) S.T.R. 444 (Tri.-Kar.) to argue that credit is eligible for group insurance services. It is submitted by her that the appellant had hired furniture for conducting seminars and other events. Credit of service tax paid on hiring such furniture has been rightly availed by the appellant and the issue stands decided in the case of M/s. C-Cubed Solutions Pvt. Ltd. Vs. Commissioner of Service Tax, Bangalore, Service Tax-I, 2017 (8) T.M.I. 792 - CESTAT Bangalore. 3
3. The learned AR, Shri B. Balamurugan, supported the findings in the impugned order.
4. Heard both sides.
5. The issue that poses for consideration is whether the services of outdoor catering, Sodexo pass for employees, business auxiliary services, group insurance services and furniture hiring services are eligible for credit. The period involved is prior to 01.04.2011, when the definition of input service had a wide ambit. Further, the decisions relied by the learned Counsel for appellant and cited supra, cover the issues that arise for consideration. Following the same, I am of the view that the denial of credit is unjustified. The impugned order is set aside. The appeals are allowed, with consequential reliefs, if any.
(Dictated and pronounced in open Court) (Sulekha Beevi C.S.) Member (Judicial) Sdd