COMMISSIONER OF CENTRAL EXCISE Vs. GTC INDUSTRIES LTD.

JUDGEMENT

(1.) HEARD both sides. This appeal is arising on account of Hon'ble High Court's order in Central Excise Appeal No. 21 of 2010, wherein the Hon'ble High Court has remanded the case to decide the question raised in this appeal in accordance with the decision of the Court in the case of Ultratech Cement Ltd. reported in , 2010 -TIOL -745 -HC -MUM -S.T. : 2010 (20) S.T.R. 577 (Bom.).

(2.) TO recapitulate, the facts of the case, in brief, are that the respondents are engaged in the manufacture of cigarettes, packing materials of paper and paper board and printing inks falling under Chapter 24, 48 and 32 of Central Excise Tariff Act, 1985. The respondents also availed CENVAT credit facility on their inputs, capital goods and input services. They availed CENVAT credit of Rs. 3,96,044/ - during the period March 2005 to March 2006 in respect of Service Tax paid on outdoor caterer's service provided by M/s. Chintamani Caterers. The said credit was disallowed to them on the ground that the said service is not an input service. The lower adjudicating authority accordingly disallowed the credit and demanded interest towards and imposed penalty under Section 11AC of the Central Excise Act. The respondents challenged the order before the Commissioner (Appeals), who allowed the respondents' appeal. Aggrieved by the same, the department preferred the appeal before the Tribunal. Larger Bench of this Tribunal decided the case in favour of the respondents. The department challenged the Tribunal's order before the Hon'ble Bombay High Court. A question of law before the Hon'ble High Court was as under: -

(3.) I have carefully considered the submissions and perused the records. The Hon'ble High Court in the Ultratech Cement Ltd.'s case (supra) in para 31 has held as under: -