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CUSTOM EXCISE & SERVICE TAX APPELLATE TRIBUNAL, MADRAS
JYOTI BALASUNDARAM, VICE-PRESIDENT
Bonfiglioli Transmissions (P.) Ltd. -Appellant
Versus
Commissioner of Central Excise, Chennai -Respondent
Final Order No. 1029/2011 appeal no. E/69/2011
Decided On : 23-08-2011
Joseph Prabhakar,Joseph Prabhakar
1. Credit of Rs.2,52,716/- has been disallowed to the assessees herein on 'Rent-a-Cab service' on the ground that the service had no nexus with the manufacturing activity. In addition, a penalty of Rs.1,000/- has been imposed.
2. I have heard both sides and find merit in the submission of the assessees that credit is admissible in the light of the judgment of the Hon'ble Bombay High Court in CCE v. Ultratech Cement Ltd.
3. Therefore, while holding that credit is admissible to the assessees on the service in question, the impugned order is set aside and the case remitted to the adjudicating authority to ascertain whether any amount has been recovered from the employee or the worker towards transportation charges and if so, credit to that extent is not admissible. The appeal is allowed by way of remand in the above terms.
