CCE Vs. M/S. SIEMENS HEALTHCARE DIAGNOSTICS LTD.

JUDGEMENT

(1.) THIS appeal is directed against order in appeal No. Commr.(A)/34/VDR -II/2011, dt. 31.01.11. The facts of the case, in brief, are that the respondents are engaged in the manufacture of excisable goods, i.e. Diagnostics Reagent, Glucostix -25 and Flowclean falling under Chapter Heading No. 38220019 and 34029011 of the Central Excise Tariff Act (CETA), 1985. During the course of audit of the records, it was found that the respondents had wrongly availed Service Tax credit of Rs. 5,42,444/ - paid by them on rent, security and maintenance services during the period from 1.9.08 to 1.4.09. The services beyond the stage of manufacture and clearance of goods from the factory could not be input service. Therefore, the respondents had wrongly taken credit of service tax paid on rent, security and maintenance because the services were not provided at the respondent's premises and these services have no nexus with the manufacture and clearance of final product. Therefore, they were not entitled to avail the said credit of service tax paid by them. Further, the respondents had neither furnished the details nor produced any documents/invoices to the department on the basis of which they had taken such credit and hence such wrongly availed by the respondents.

(2.) SHOW cause notice was issued for the demand of the said cenvat credit availed by the appellant with the proposition of interest and also imposition of penalty. Adjudicating authority after following the due process of law, confirmed the demands with interest and also imposed penalties. Aggrieved by such an order, the respondents preferred an appeal before the first appellate tribunal. The first appellate tribunal after considering the submissions made before him during the personal hearing and also the grounds of appeal taken by the assessee, relying upon the decision of the Hon'ble High Court of Bombay in the case of Ultratech Cement Ltd. (2000 -TIOL -745 -HC -MUM) set aside the impugned order. Aggrieved by such an order, Revenue is in appeal before the Tribunal.

(3.) LD . counsel on the other hand would submit that in an identical issue came up before the Hon'ble High Court of Bombay in the case of Deepak Fertilizers and Petrochemicals Corporation Ltd., 2013 -TIOL -212 -HC -MUM -CX and submit that the Hon'ble High Court have, following the judgment of Ultratech Cement Ltd., held that any services rendered which is beyond the place of manufacture is also eligible for availing the cenvat credit. He produces the copy of the said judgment.