Custom, Excise & Service Tax Tribunal
Tema India Limited vs C.C.E, Bharuch on 14 August, 2017
CUSTOMS EXCISE & SERVICE TAX APPELLATE TRIBUNAL, West Zonal Bench, 2nd Floor, Bahumali Bhavan, Asarwa, Ahmedabad Central Excise Appeal No.11002 of 2015-SM Arising out of the Order-in-Appeal No.CCESA-VAD (APP-II)/SSP-77/2014-15 dated 30.1.2015 by the Commissioner (Appeals), Central Excise & Customs, Surat. Tema India Limited .. Appellants Vs. C.C.E, Bharuch ..Respondent-Revenue
Appearance:
Present Shri V. Kansara, Advocate for the appellants Present Shri N. Satwani, A.R. for the Respondent-Revenue Coram: Honble Dr. D.M. Misra, Member (Judicial) Date of hearing/decision: 14.8.2017 Final Order No. A/11801/2017 Per Dr. D.M. Misra:
Heard both sides. The short issue involved in the present appeal is: whether the appellants are entitled to avail CENVAT credit of service tax paid under reverse charge mechanism for receiving services from overseas service providers, namely, M/s Zyfax, M/s SPC (Project Engineering ,Gmbh) and M/s Optimum Engineering, Australia during the period February 2008 to February 2009. Demand was confirmed on the ground that since the services received were not related to manufacturing of heat exchanger, therefore, credit was not admissible on the same.
3. The ld. Advocate for the appellant submits that in manufacture of heat exchanger which were exported, they received technical consultancy service from overseas service providers and used the same in or in relation to the manufacture of heat exchanger, therefore, they are eligible to CENVAT credit. In support of his contention, he refers to the judgments of this Tribunal in the case of Enmas Andritz Pvt. Ltd. vs. C.C.E. 2017 (48) STR 261 (Tri) ; Dy.General Manager, Tata Motors Ltd. vs. C.C.E. 2015 (40) STR 269 (Tri.).
4. Ld. A.R. for the Respondent-Revenue reiterates the findings of the ld. Commissioner (Appeals).
5. I find that the appellant had paid service tax under reverse charge mechanism on receiving management consultancy/technical consultancy services from the overseas service provider and used the same in the manufacture of heat exchangers, thus, satisfies the definition of input service , prescribed under Rule 2(l) of Cenvat Credit Rules, 2004 in view of the judgments of the Tribunal in the cases of Enmax Andritz Pvt. Ltd. (supra) and Dy.General Manager, Tata Motors Ltd. (supra). In the result, the appellants are eligible to CENVAT credit on the service tax paid on such services. Consequently, the impugned order is set aside and the appeal is allowed with consequential relief, if any, as per law.
(Dr. D.M. Misra) Member (Judicial) scd/ E/11002/2015-SM 1