BHILAI AUXILARY INDUS. Vs. CCE

JUDGEMENT

(1.) HEARD the learned Departmental Representative for the respondent. Shri Bipin Garg, Advocate, appearing for the appellants informed that, the party has already expressed in writing that the Tribunal should decide the matter on perusal of the records and, therefore, he has no submission to make in the matter. He has, however, drawn my attention to the fact that the decision of the Larger Bench in the matter of ABB Ltd. v. Commissioner of Central Excise & Service Tax, Bangalore reported in : 2009 (15) S.T.R. 23 (LB -T) has been stayed by the Karnataka High Court.

(2.) THE records also disclose a submission in writing on behalf of the appellants filed in the Court on 25 May, 2009 that the Tribunal may decide the appeal on the basis of merits of the case.

(3.) THE appellants are the manufacturers of goods falling under Chapter 73 of the First Schedule to the Central Excise Tariff Act, 1985. They availed the cenvat credit facilities under the Cenvat Credit Rules, 2004 for the period April, 2005 to December, 2005. The Department, however, observed that, out of the total cenvat credit facility availed by the appellants, they were not entitled to avail the same in relation to a sum of Rs. 40,274/ - relating to Service Tax paid on the services provided by Goods Transport Operator in respect of outward freight as well as an amount of Rs. 95,247/ - relating to the availment of Service Tax on the commission paid to the commission agent for sale of finished goods. Accordingly, the show cause notice dated 14 March, 2006 came to be issued for disallowance of the said credit and for recovery thereof along with interest and for imposition of penalty. The matter was contested by the appellants and thereupon by order dated 31st October, 2006, the Deputy Commissioner, Bhilai, disallowed the cenvat credit amount totalling to Rs. 1,35,521/ - and further imposed penalty of Rs. 30,000/ - and ordered payment of interest on the amount due. Being aggrieved, the appellants preferred the appeal before the Commissioner (Appeals) which came to be disposed of by the impugned order dated 31st January, 2007. By the impugned order, the Commissioner (Appeals), Raipur, partly allowed the appeal whereby he set aside the order of the adjudicating authority disallowing the credit to the extent of Rs. 95,247/ - in relation to the amount paid in the form of commission for services rendered; however, rejected the claim in relation to the Service Tax relating to outward services amounting to Rs. 40,274/ -. The Commissioner (Appeals) also reduced the penalty to Rs. 10,000/ -. Hence the present appeal.