M/S. HINDALCO INDUSTRIES LTD. Vs. CCE VAPI

JUDGEMENT

(1.) THE appellants are engaged in manufacture of Aluminum foils/alloy wheels/plates etc. The appellants availed CENVAT Credit of Service Tax paid by them on rent -a -cab service. During the period from April 2005 to October 2009, the credit has been denied on the ground that the rent -a -cab service was also used by the family members of employees and children for going to school. On the ground that the rent -a -cab service was not exclusively used in relation to manufacture, CENVAT Credit has been denied, availed credit has been demanded with interest and penalty amounting Rs.4,16,022/ - has also been imposed.

(2.) AFTER hearing both sides, it was found that the appellants had concentrated their defence on merits alone and alternative submission regarding limitation has not been properly made. Further, many decisions of Hon'ble Supreme Court/Hon'ble High Court/Tribunal on limitation as well as on CENVAT Credit of services were rendered subsequent to the decision of lower authority or were not mentioned before lower authority. In view of the above, I find that the matter is required to be remanded for fresh consideration. Therefore, the requirement of pre -deposit is waived and appeal itself is taken up for final decision.