Custom, Excise & Service Tax Tribunal
M/S. National Engg. Industries Ltd vs Cce, Jaipur-I on 29 August, 2011
CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL, West Block No. 2, R.K. Puram, NEW DELHI COURT NO. II E/Stay/1452/2011-SM in & Central Excise appeal No. 1134/2011-SM Date of hearing/decision: 29th August, 2011 M/s. National Engg. Industries Ltd., Appellant Reptd. By Ms. Sukrit Das, Advocate Versus CCE, Jaipur-I Respondent
Reptd. By Shri Anil Khanna, D.R. Coram: Honble Shri D.N. Panda, Judicial Member FINAL ORDER NO. DATED Per D.N. Panda:
Learned Counsel submits that disallowance of Cenvat Credit relates to use of telephone, website development and internet connection on which service tax has been paid. She says that these communication facilities are essentially required for carrying out business activities.
2. Learned D.R. submits that there is no nexus between service provided and utilization thereof for the permitted activities.
3. When the proposition of both sides is as above, looking to the magnitude of disallowance of Cenvat credit of Rs. 1,33,068/- pre-deposit is waived and appeal is decided by this common order.
4. Order of learned adjudicating authority does not demonstrate use of the service for a purpose othyer than carrying out activity of business by the appellant under Rule 2(l) of Cenvat Credit Rules, 2004. It may be stated that every proposition should be supported by cogent evidence and law. Nothing being coming out from page 37 and 38 of adjudication order, Adjudication fails to sustain. Appellate authoritys finding do not throw light as to presence of elements of disallowance. Show cause notice is also vague. There is no scope to sustain the adjudication. Accordingly appeal is allowed. Dictated & pronounced in the open Court.) (D.N. PANDA) JUDICIAL MEMBER RK 2 E/1134/2011-SM