FORCE MOTORS LIMITED Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) THIS appeal is directed against Order -in -Appeal No. P -l /BBP/ 66/07, dated, 29 -6 -2007.

(2.) THE relevant fact that arise for consideration are the appellant herein availed credit of tax paid by Airports Authority of India in respect of the Air Craft which is owned and operated by the appellant for carrying on business as a manufacturer. Such availment of credit was disputed by the Revenue and show cause notice was issued to the appellant for disallowing such credit and imposition of penalty. The appellant contested the show cause notice before the adjudicating authority and adjudicating authority after considering the contentions raised by the appellant confirmed the demand of the duty by disallowing the credit of the service tax paid by Airport Authority of India, he also imposed penalty. On an appeal, the Ld. Commissioner (Appeals) upheld the order as to the confirmation of the demand but reduced the penalty imposed on the appellant. Hence this appeal.

(3.) THE Ld. SDR on the other hand would submit that it is very clear that the definition of input service as mentioned in Rule 2(1) of the Cenvat Credit Rules, will not cover the service tax credit availed by the appellant. He draws my attention to the said rule and submits that the services provided by the Airport Authority are too remote to be regarded of a kind mentioned in the input service definition. It is his submission that the impugned order is correct and does not require any interference.