Custom, Excise & Service Tax Tribunal
Cce, Chennai vs M/S. Visteon Automotive Systems ... on 13 July, 2010
IN THE CUSTOMS, EXCISE & SERVICE TAX
APPELLATE TRIBUNAL
SOUTH ZONAL BENCH AT CHENNAI
Appeal No. E/152/2010
(Arising out of Order-in-Appeal No. 102/2009 (M-III) dated 31.12.2009 passed by the Commissioner of Central Excise (Appeals), Chennai)
CCE, Chennai Appellant
Vs.
M/s. Visteon Automotive Systems (India) Pvt. Ltd. Respondents
Appearance Shri C. Dhanasekaran, SDR for the Appellant Shri K.S. Venkatagiri, Advocate for the Respondents CORAM Honble Dr. Chittaranjan Satapathy, Technical Member Date of Hearing: 13.07.2010 Date of Decision: 13.07.2010 Final Order No. ____________ Heard both sides. Shri K.S. Venkatagiri, learned counsel appearing for the respondent states that the dispute in this case relates to eligibility in respect of input service tax credit on catering service used by the appellants in the manufacture of alternator and starter motor. He states that the respondents are eligible for such credit in view of the Larger Bench decision of the Tribunal in the case of CCE, Mumbai Vs. GTC Industries Ltd. 2008 (12) STR 468.
2. Shri C. Dhanasekaran, learned SDR appearing for the Department states that the issue has been decided by the Tribunal in the case of CCE, Chennai Vs. Sundaram Brake Linings Ltd. & Others in respect of 13 appeals vide Final Order No. 649 to 661/2010 dated 18.6.2010 following the decision of the Honble Supreme Court in the case of Maruti Suzuki Ltd. Vs. CCE, Delhi 2009 (240) ELT 641 (SC) in favour of the Department and hence the Departments appeal should be allowed.
3. After hearing arguments from both sides, I find that the issue as to whether catering service can be considered as an input service for manufacture of finished goods has been considered at length in the Tribunals order dated 18.6.2010. In the group of appeals decided thereunder the cited Larger Bench decision was duly considered as also a subsequent decision of the Honble Supreme Court in the case of Maruti Suzuki (supra). For the detailed reasons stated therein and following the ratio of the Honble Supreme Courts decision in Maruti Suzuki (supra), it has been held that service tax credit in respect of catering service is not admissible in respect of manufactured goods. Following the ratio of the cited decision dated 18.6.2010 and for the detailed reasons stated therein, I set aside the impugned order by confirming the demand of service tax and interest while setting aside the penalty imposed. The departments appeal is partly allowed (Operative portion of the order was pronounced in open court on completion of hearing) (Dr. Chittaranjan Satapathy) Technical Member Rex ??
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