COMMISSIONER OF CENTRAL EXCISE, BANGALORE-I COMMISSIONERATE Vs. IFB INDUSTRIES LTD.

JUDGEMENT

(1.) THIS appeal is by the revenue being aggrieved by the order of the Tribunal holding that the assessee is entitled for cenvat credit of the service tax paid on catering services.

(2.) THE assessee is engaged in the manufacture of excisable goods i.e. 'Fine Blanking Components'. It was observed by the revenue that the assessee had availed credit of service tax to the extent of Rs. 47,523/ - paid on catering service for the period January 2008 to June 2008. Accordingly, a show -cause notice dated 23.10.2008 was issued to show -cause as to why the cenvat credit irregularly availed should not be demanded and recovered from them along with interest and penalty. On reply to the show -cause notice, the Assessing Authority confirmed the demand, interest and penalty. Thereafter, the assessee preferred an appeal to the Commissioner of Central Excise, wherein the Appellate Authority rejected the same. Thereafter, the assessee preferred an appeal before the Tribunal. The Tribunal by placing reliance on the Larger Bench decision of the Tribunal in the case of CCE vs. GTC Industries Ltd. [2008] 17 STT 26 (Mum. - CESTAT), allowed the appeal and set aside the impugned orders therein by holding that the assessee is entitled to avail cenvat credit for the service tax paid on catering services. Being aggrieved by the same, the revenue preferred the present appeal.

(3.) AN identical question came up for consideration before the Division Bench of this court in the case of CCE vs. Stanzen Toyotetsu India (P.) Ltd. [2011] 32 STT 244/ 12 taxmann.com 101.