TMI Blog2012 (12) TMI 388X X X X Extracts X X X X X X X X Extracts X X X X ..... ittedly did not have 250 or more employees/workers during the material period. Cenvat Credit on AMC for computers - certain part of the CENVAT credit taken on AMC for computers was reversed by the appellant accepting the fact that this much credit was not used in connection with manufacture or clearance of their products. - for the remaining part, credit allowed. CENVAT credit on Air travel agent’s service - claim of the appellant is that their employees had to travel extensively in connection with the business of the appellant – Held that:- There is no documentary evidence to show that the air travels made by the employees were in connection with the business of manufacturing and marketing of excisable products and not as part of an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the challenge is directed against denial of input duty credit amounting to ₹ 1,97,601/- for the period from November 2006 to October 2007. The credit was denied on certain inputs, the value of which was written-off on 31-3-2007 for income tax purposes. In this connection, the case of the appellant is that they were not liable to reverse the CENVAT credit on such inputs inasmuch as the requirement for such reversal of credit was introduced for the first time in the CENVAT Credit Rules by the Central Government by way of insertion of sub-rule (5B) in Rule 3 of the CENVAT Credit Rules, 2004 with effect from 11-5-2007 only. The argument is that, prior to 11-5-2007, there was no embargo on availment of CENVAT credit on written-off input ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 11 (22) S.T.R. 471 (Tri.-Mum.) (in respect of AMC for air conditioners, ST plant for sewage disposal). 4. The learned Superintendent (AR) submitted that the appellant who employed only less than 250 employees in his manufacturing plant during the material period was not entitled to take CENVAT credit on outdoor catering service (canteen facility). He relied on Stanzen Toyotetsu (supra). However, he has not cited any decision in relation to the other services/activities. He reiterates the findings recorded by the original and appellate authorities. In his rejoinder, the learned counsel fairly concedes that the number of workers/employees was less than 250 during the material period. Nevertheless, it is his contention that the appellant wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ctories Act and took the view that CENVAT credit could not be denied to the assessee in respect of outdoor catering service (canteen facility) as it was their statutory liability to maintain a canteen where the number of employees was more than 250. This statutory liability under Section 46 of the Factories Act does not exist in the instant case as the appellant admittedly did not have 250 or more employees/workers during the material period. In the case of Commissioner v. GTC Industries - 2008 (12) S.T.R. 468 (Tri.-LB), a larger bench of this Tribunal also held to the same effect and that view came to be upheld by the Hon ble High Court in the case of Commissioner v. Ultratech Cement Ltd. - 2010 (20) S.T.R. 577 (Bom.). This being the legal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sides. 10. As regards air travel agent s service, the claim of the appellant is that their employees had to travel extensively in connection with the business of the appellant. However, there is no documentary evidence to show that the air travels made by the employees were in connection with the business of manufacturing and marketing of excisable products and not as part of any welfare scheme for the employees. In this scenario, the challenge against denial of CENVAT credit on air travel agent s service fails. On the contrary, the appellant has a valid point in relation to online auction service. They submit that they used this service for disposal, by auction, of scrap which was generated in the course of manufacture of their final p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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