CCE VAPI Vs. M/S. NILKAMAL LTD.

JUDGEMENT

(1.) THE facts of the case in brief are that during the course of CERA Audit, it was noticed that the respondent has availed cenvat credit of service tax of Rs.4,01,901/ - on courier services during the period September, 2008 to August, 2009. The CERA audit entertained a view that the said service does not fall under input service definition as per Rule 2(1) of Cenvat Credit Rules, 2004 and hence the respondent was not eligible for cenvat credit. Accordingly, show cause notice dated 29.09.09 was issued which after due process of law was decided vide impugned order wherein demand of Rs.4,01,901/ - along with interest has been confirmed and equivalent penalty has been imposed. Appeal filed by the respondent was allowed and therefore Revenue is in appeal.

(2.) HEARD the ld. A.R.