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CENVAT credit of hotel bills is admissible as hotel stay is for purpose of business activity by company staff and not for personal use: CESTAT, Ahmedabad

IN THE CUSTOMS, EXCISE AND SERVICE TAX APPELLATE TRIBUNAL

WEST ZONAL BENCH, AHMEDABAD

E/ROA/10053/2019-SM

Appeal No. E/12800/2018-SM

Arising out of OIA-RAJ-EXCUS-000-APP-162-2018-19, Dated: 11.09.2018

Passed by Commr. (Appeals)-Rajkot

Date of Hearing: 08.03.2019

Date of Decision: 08.03.2019

M/s SHREE DIGVIJAY CEMENT COMPANY LTD

Vs

COMMISSIONER OF CENTRAL EXCISE AND SERVICE TAX

RAJKOT

Appellant Rep by: Mr Anil Gidwani, Adv.

Respondent Rep by: Shri G Jha, AR

CORAM: Ramesh Nair, Member (J)

CX – Matter contained in appeals is a recurring issue and periodical demands were raised – appeal dismissed earlier on monetary limit without going into the merit is restored – CENVAT credit of hotel bills is admissible as hotel stay is for the purpose of business activity by the company staff and not for personal use – impugned order set aside and appeal allowed: CESTAT [para7]

Application allowed/Appeal allowed

MISC. ORDER NO. M/10142/2019

FINAL ORDER NO. A/10471/2019

Per: Ramesh Nari:

The restoration application was filed by the applicant. The appeal was dismissed on monetary limit without going into the merit of the case.

2. Sh. Anil Gidwani, Ld. Consultant appearing on behalf of the applicant submits that the issue is already covered with various judgments. He submits that the issue is covered in their own case, moreover the dismissal order was passed Ex-parte.

3. Considering the submission made by Ld. Consultant, the order of dismissal dated 19.11.2018 is recalled and appeal is restored in its original number.

4. With the consent of both the sides, I am taking up the appeal for final disposal. The issue involved is only eligibility of the Cenvat Credit on the Hotel Bills.

5. Ld. Consultant submits that the hotel stay is for the purpose of business activity by the staff of the company. Therefore, it is related to overall business of the company. He submits that in their own case by order dated 07.01.2018 this Tribunal has allowed the Cenvat Credit on Hotel Accommodation.

6. Sh. G. Jha, Ld. Superintendent (AR) appearing on behalf of the Revenue reiterates the findings of the impugned order. He further submits that the Commissioner (Appeals) has dismissed their appeal in absence of any documentary evidence.

7. Heard both the sides and perused the records. I find that it is a recurring issue and periodical demand was raised. This Tribunal in their own case vide Final Order No. A/10147-10149/2018 dated 17.01.2018 decided the same issue in their favour. Considering the said decision of the Tribunal, I set aside the impugned order and allow the appeal.

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