COMMISSIONER OF CENTRAL EXCISE Vs. STANZEN TOYOTETSU INDIA P LTD

JUDGEMENT

(1.) All these appeals are preferred by the revenue challenging the order of the Tribunal which held that the assesses are entitled to CENVAT credit on the service tax paid on outdoor catering services, transportation charges, rent-a-cab scheme and Group health Insurance.

(2.) The Assessees are manufacturers of parts and accessories of motor vehicles falling under Chapter 87089900 of the Central Excise Tariff Act, 1985. They are also availing CENVAT credit of duty paid on inputs, capital goods and service tax paid on services used in or in relation to manufacture of their final products.

(3.) By the scrutiny of the records, the revenue found that the Assessee had availed and utilized input service tax credit relating to canteen services. They also noticed that the Assessee had availed and utilized the input service tax credit relating to Rent-a-Cab service and on the Group Health Insurance services. Therefore a show cause notice was issued to the Assessee asking him to show cause as to why the total input service credit availed in respect of outdoor catering, Rent-a-Cab Service and Group Health Insurance services should not be treated as wrong availment and. utilization of input service credit and the same should not be recovered under Rule 14 of the CENVAT Credit Rules, 2004 and also interest and penalty on the duty leviable.