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2024 (1) TMI 331 - CESTAT KOLKATACENVAT Credit - input services - Manpower Supply Services - denial on the ground that the Manpower supply was in relation to Depot management, Sales and other activities which are not directly connected to manufacturing activity - Time limitation - HELD THAT:- The Adjudicating Authority has taken a very narrow view holding that the Manpower Service should be relatable only to the ‘manufacturing activity’ and not to any other activities outside the factory premises - this view is found to be grossly erroneous. Had he taken care to go through the definition of input service in a harmonious way, he would have found that there are many services which are provided by the service provider outside the manufacturing factory premises, which are all eligible for Cenvat Credit. Therefore, the OIO set aside on merits and the Appeal allowed. Time Limitation - HELD THAT:- The Department has been accepting their ER 1 Returns wherein the Cenvat Credit taken by them would have been shown on a regular basis. After the audit had taken an objection on this issue in 2006, the Appellant has filed their reply after which no further action was taken up by the Department. As a matter of fact, since Audit has raised this issue in 2006, the Department should not have waited for more than four years to issue the Show Cause Notice. Therefore, the Show Cause Notice issued is hopelessly time barred. The Appeal stands allowed both on merit as well as on account of time bar.
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