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2016 SCC OnLine CESTAT 3269

In the Customs Excise and Service Tax Appellate Tribunal

West Zonal Bench at Mumbai
Court No. 1
(BEFORE M.V. RAVINDRAN, MEMBER (JUDICIAL) AND C.J. MATHEW, MEMBER (TECHNICAL))

(Arising out of Order-in-Original No. V/ST(HQ)/ADJ/HDFC-1022/09 dated

9.4.2012 passed by Commissioner of Central Excise, Thane-II)
HDFC Bank Ltd. … Appellant;
Versus
Commissioner of Central Excise, Thane-II … Respondent.
Application No. ST/MA(Ors)/93200/16-Mum and Appeal No. ST/488/12-Mum
Decided on August 9, 2016, [Date of Hearing: 9.8.2016]
Appearance:
Ms. Prajakta Menezes, C.A., for Appellant
Shri M.P. Damle, Assistant Commissioner (AR), for Respondent
ORDER NO.
M.V. RAVINDRAN, MEMBER (JUDICIAL):— This application is filed for raising
additional grounds of revenue neutrality in appeal No. ST/488/12.
2. After considering the submissions made by both sides, we find that this point of
revenue neutrality is a legal issue and hence we allow the application.
3. Since the appeal lies in a narrow compass, we take up the appeal for disposal.
4. Heard both sides and perused the records.
5. This appeal is filed against order-in-original No. V/ST(HQ)/ADJ/HDFC-1022/09
dated 9.4.2012, wherein the adjudicating authority has confirmed the demands raised
against the appellant categorizing the services rendered under ‘Merchant Banking
Services of Banking and other Financial Services’ by way of reverse charge
mechanism.
6. It is the case of the appellant before us that assuming, not accepting that the
tax liability arises under reverse charge mechanism, they are eligible to avail the
cenvat credit of such service tax paid by them as they are rendering taxable output
services. This is the argument not canvassed before the adjudicating authority. In our
considered view, this revenue neutrality point needs to be addressed to by the
adjudicating authority.
7. Without expressing any opinion on the merits of the case, keeping all the issues
open, we set aside the impugned order and remand the matter back to the
adjudicating authority to reconsider the issue afresh after following the principles of
natural justice.
8. The impugned order is set aside and the appeal is allowed by way of remand.
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