Appeal No. ST/125/2008-SM (Arising out of: OIA No. Commr. (A)/53/VDR-II/ 2008, dt. 25.04.2008. Passed by Commissioner (Appeals), Central Excise & Customs, Vadodara). Case: M/s. Market Systems Vs C.C.E. and S.T., Vadodara-I. CEGAT (Customs, Excise & Gold (Control) Appellate Tribunal) & CESTAT (Customs, Excise and Service Tax Appellate Tribunal)
| Case Number | Appeal No. ST/125/2008-SM (Arising out of: OIA No. Commr. (A)/53/VDR-II/ 2008, dt. 25.04.2008. Passed by Commissioner (Appeals), Central Excise & Customs, Vadodara) |
| Counsel | For Respondents: Shri K.J. Kinariwala, (A.R.) |
| Judges | H.K. Thakur, Member (T) |
| Issue | Finance Act, 1994 - Sections 2(l)(ii), 76 |
| Judgement Date | May 30, 2014 |
| Court | CEGAT (Customs, Excise & Gold (Control) Appellate Tribunal) & CESTAT (Customs, Excise and Service Tax Appellate Tribunal) |
Order:
H.K. Thakur, Member (T), (West Zonal Bench At Ahmedabad)
Order No. A/11043/2014
1. This Appeal No. ST/125/2008 is filed by M/s. Market Systems against Order-in-Appeal No. Commr.(A)/53/VDR-II/ 2008 dated 25.04.2008 passed by the Commissioner (Appeals), Central Excise & Customs, Vadodara.
2. The appellant is manufacturer of excisable goods paying service tax on the services received by them under the category of "Transportation of Goods by Road" (GTA Service) in respect inward transportation of inputs as well as outward transportation of finished goods. During the period from October 2005 to September 2006, appellant discharged its service tax liability of Rs. 6,01,055/- (Service Tax Rs. 5,89,248/- plus Education Cess Rs. 11,807/-) under GTA service utilizing CENVAT Credit, which was objected to by the Revenue on the ground that as per Rule 3(4)(e) of CENVAT Credit Rules, 2004, CENVAT Credit could not be utilized for payment of service tax on GTA service, which was its "input service" and not its "output service". Further, the Revenue also objected to taking of CENVAT Credit of service tax of Rs. 5,02,949/- paid by the appellant on outward transportation of finished goods beyond the place of removal. The adjudicating authority confirmed the demand of service tax of Rs. 6,01,055/- along with interest against the appellant, disallowed CENVAT Credit of Rs. 5,02,949/- along with interest, and imposed penalties under Section 76 of the Finance Act, 1994 and Rule 15(1) of the CENVAT Credit Rules, 2004. The Commissioner (Appeals) upheld the Order of the adjudicating authority under the impugned Order-in-Appeal.
3. The matter was fixed for hearing on 16.05.2014. None appeared on behalf of the appellant. However, the appellant filed written submissions with the Registry on 15.05.2014 for placing the same before this court on 16.05.2014 for deciding the matter. The appellant submitted that both the issues involved in the appeal for the period prior to 01.03.2008 stand decided in view of the decision of this Tribunal in their own case for the period from October 2006 to February 2008 vide Order No. M/10524/WZB/AHD/2013 dated 12.02.2013, and the following case laws:
(i) CCE Vs. Nova Petrochemicals Ltd. - [2013 (31) STR 735 (Tri. Ahmd.)];
(ii) CCE Vs. Cheran Spinners Ltd. - [2014 (33) STR 148 (Mad.)]; and
(iii) Panchmahal Steel Limited Vs. CCE - [2014 (34) STR 351 (Tri. L.B.)]
4. On the other hand Shri K. J. Kinariwala, Ld. A. R. for the...
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