Custom, Excise & Service Tax Tribunal
M/S. Servall Engineering Works Pvt. Ltd vs Cce, Salem on 18 December, 2015
IN THE CUSTOMS, EXCISE & SERVICE TAX
APPELLATE TRIBUNAL
SOUTH ZONAL BENCH, CHENNAI
Appeal Nos. E/40784 & 40786/2014
(Arising out of Order-in-Appeal No.15 & 16/2014-CE dated 16.1.2014 passed by the Commissioner of Customs & Central Excise (Appeals), Salem)
M/s. Servall Engineering Works Pvt. Ltd. Appellant
Vs.
CCE, Salem Respondent
Appearance Ms. D. Naveena, Advocate for the Appellant Shri B. Balamurugan, AC (AR) for the Respondent CORAM Honble Shri D.N. Panda, Judicial Member Date of Hearing / Decision: 18.12.2015 Final Order No. 41717-41718 / 2015 It is submitted on behalf of the appellant that in both the appeals common disallowance of service tax credit as input credit relates to cell phone service availed, courier service as well as service of travel agent availed. The additional issue that is involved for the period 1.4.2012 to 31.3.2013 is service tax paid on telephone charges.
2. The appellant says that the use of the service of cell phone operator service, courier agency service as well as travel agency and telephone service provider are in relation to manufacturing as well as commercial activity of the appellant. Therefore, CENVAT credit claimed on all such services may be allowed.
3. So far as services related to cell phone, courier agency as well as telephone operator services are concerned, it is quite possible as to the use of those services for the purpose of manufacturing and commercial activity of the appellant. Therefore, CENVAT credit claimed in respect of service tax paid thereon are allowed.
4. So far as travel agency service is concerned, appellant has not at all the explained the reason as to where such service was utilized and for what purpose and whether in relation to manufacture or not. Therefore, on this limited count, the matter is remitted to the adjudicating authority to satisfy him with the evidence as to the use of such service in taxable service activity or manufacturing activity. Only upon satisfaction either way, the authority shall pass appropriate reasoned and speaking order. Appellant is entitled to reasonable opportunity of hearing.
5. In the result, both the appeals are disposed on the above terms.
(Dictated and pronounced in open court) (D.N. Panda) Judicial Member Rex 2