M/s. Sungwoo Gestamp Hitech India Pvt. Ltd. Versus CGST & CE, Chennai Outer
Central Excise
2018 (9) TMI 895 – CESTAT CHENNAI – TMI
CESTAT CHENNAI – AT
Dated:- 28-6-2018
E/40082/2018 – Final Order No. 41977/2018
Central Excise
Shri P. Dinesha, Judicial Member
Ms. P. Srija, Advocate for the Appellant
Shri R. Subramaniyam, AC (AR) for the Respondent
ORDER
The brief facts are that M/s. Sungwoo Gestamp Hitech India Ltd., the appellants herein are engaged in the manufacture of 'Automobile Parts and Seats parts” and are availing Cenvat credit on inputs, capital goods and input services. On verification of records it was found that the appellant had availed 'Rent-a-Cab' services for the staff/employees working in the off
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Ld. Commissioner (Appeals) confirmed the denial of Cenvat credit, but set aside the penalty imposed by the adjudicating authority. Aggrieved by the same, the appellant is before this forum.
2. Heard Ms. P. Srija, Ld. Advocate for the appellant and Shri R. Subramaniyam, AC (AR) for the Revenue.
3. It was argued by the Ld. Advocate for the appellant that Cenvat credit was denied on Rent-a-Cab services that was availed for transportation of staff/employees of the appellant firm on the ground that these services do not qualify as input services, as per Rule 2 (l) of the CCR, 2004, since this Rule was amended with effect from 01.04.2011. This Rule provides for certain exclusions and Cenvat credit in respect of services specifically excluded fr
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n by the Ld. Advocate, it is seen that the Tribunal followed the decision of the Hon'ble High Court of Bombay in the case of Ultratech Cement Ltd. – 2010 (20) STR 577 (Bom.) wherein, it has been held that Rent-a-Cab services availed by the assessee for the employees bringing them from their residence to factory or vice versa, qualifies as input services. By following the ratio of the above decision of the Tribunal, I hold that prior to 01.04.2011, Rent-a-Cab services are eligible input services and Cenvat credit cannot be denied on these input services. Accordingly, the impugned order is set aside and the appeal allowed with consequential reliefs, if any.
(Operative portion of the order pronounced in open court)
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