Custom, Excise & Service Tax Tribunal
Cadence Design Systems India Pvt Ltd vs Commissioner Of Service Tax ... on 18 July, 2014
CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL SOUTH ZONAL BENCH BANGALORE Final Order . 21189 / 2014 Application(s) Involved: ST/Stay/21868/2014 in ST/21673/2014-SM Appeal(s) Involved: ST/21673/2014-SM [Arising out of 105-106-2014 dated 02/02/2014 passed by CCE(Appeals) , BANGALORE-II ] Cadence Design Systems India Pvt Ltd 2nd Floor, 3b Building, Rmz Ecospace, Sarjapur Outer Ring Road, Opp Pratham Motors BANGALORE - 560103 KARNATAKA Appellant(s) Versus Commissioner of Service Tax Bangalore-service Tax 1ST TO 5TH FLOOR, TTMC BUILDING,above BMTC BUS STAND,DOMLUR BANGALORE, - 560071 KARNATAKA Respondent(s)
Appearance:
Shri P. Dinesh, Advocate For the appellant Shri Ganesh Haavanur, Addl. Commissioner(AR) For the respondent CORAM:
HON'BLE SHRI S.K. MOHANTY, JUDICIAL MEMBER Date of Hearing: 18/07/2014 Date of Decision: 18/07/2014 Order Per : S.K. MOHANTY Denial of CENVAT credit on the input services is the subject matter of present appeal. The Commissioner (Appeals) in the impugned order has allowed CENVAT credit on the input services wherever it is demonstrated that the said services have the nexus with the output services. However, for verification of documents relating to the taxable services, the matter has been referred to the original authority for necessary verification. With regard to the taxable services such as, car lease charges/vehicle lease charges/vehicle rental charges, conference call charges, decommissioning of exhaust pipe and control panel, hire charges/labour charges, coupon vouchers, tissue charges, pens, mineral water, carpet cleaning charges, misc. charges, gift coupons, food testing charges, plaques making charges/ coffee, tea expenses/banquets charges, appearing at Sl. Nos. (iii), (iv), (v), (vii) and (xxi) in paragraph 7 of the impugned order, the credit has been denied on the ground that the appellant has not provided any evidence or write up to show as to how the said services are used in the provision of output services and also the nexus has not been established between the input and the output services.
2. Heard the learned counsel for the parties and perused the records.
3. The CENVAT Credit Rules, 2004 permits a manufacturer or service provider for taking CENVAT credit of service tax paid on the taxable services, subject to fulfillment of the condition that the nexus between the input and the output services are proved to the satisfaction of the assessing authority that the such services are confirming to the definition of the input services as contained in Rule 2(l) of the Cenvat Credit Rules, 2004. In the present case, I find that for non-submission of proper write-up/documents as regards the use of input services, the CENVAT credit has been disallowed in the impugned order, which according to my opinion is justified.
4. Considering the fact that the appellant has not substantiated its stand before the authorities below with the help of documentary evidences that it is eligible for CENVAT credit on the disputed services, I direct the appellant to pre-deposit an amount of Rs.50,000/- (Rupees fifty thousand only) within four weeks from today and to file the compliance report before the original authority on 22/08/2014. The appellant is directed to produce the evidence before the original authority to establish the claim that the disputed services listed above are eligible for CENVAT credit. Thereafter, the adjudication order shall be passed by the authority after affording opportunity of personal hearing to the appellant. The appeal is remanded in the above manner. Stay application also disposed of.
(Operative portion of the order pronounced in open court) S.K. MOHANTY JUDICIAL MEMBER Raja.
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