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CUSTOM EXCISE & SERVICE TAX APPELLATE TRIBUNAL, MADRAS
MS. JYOTI BALASUNDARAM, J.
Cholamandalam Ms Risk Services Ltd. -Appellant
Versus
Commissioner of Service Tax, Chennai -Respondent
STAY ORDER NO. 381 OF 2011 APPLICATION NO. ST/S/58 OF 2011 APPEAL NO. ST/77 OF 2011
Decided On : 01-04-2011
Ms. Radhika,T.H. Rao
1. Heard both sides on the application for waiver of pre-deposit of tax of Rs. 60,919/- together with interest and penalties imposed under Sections 76, 77 and 78 of the Finance Act, 1994. The demand stands confirmed as a result of holding that the assessees are not eligible to credit of service tax paid on input services such as ‘Rent-a-Cab Operator service’, ‘Outdoor Catering service’ and ‘Printing and Stationery service’.
2. I find that the lower appellate authority has relied upon the Apex Court’s decision in Maruti Suzuki Ltd. v. Commissioner of Central Excise, Delhi-III [2009 (240) E.L.T. 641 (S.C.)] to deny the credit. However, even applying the test that services rendered must have a nexus with the business of manufacture by the assessees, prima facie, such nexus has been "established, as there is no dispute that travel by engaging a ‘Cab’ or services of ‘Tour Operator’ was for official purpose, namely, for visiting the clients of the assessees; that ‘Printing and Stationery’ was for the purpose of printing of brochures for assessees’ advertisements and as regards ‘Outdoor Catering’, the decision of the Hon’ble Bombay High Court in Commissioner of Central Excise, Nagpur v. Ultratech Cement Ltd., & Another [2010-TIOL-745-HC-MUM-ST = 2010 (20) S.T.R. 577 (Bom.)], prima facie, supports the contention of the assessees. I, therefore, waive pre-deposit of the amounts in question and stay recovery thereof pending the appeal.
