2014 (1) TMI 819 - AT - Service Tax

Availment of CENVAT Credit - Hiring JCB crane - Uprooting of trees under permit of Government of Rajasthan for use thereof to get charcoal to ultimately use the same in manufacture of calcium carbide - Held that - appellant cannot be disentitled to Cenvat credit of Service Tax paid for hiring JCB crane which was not found to have been used in carrying out above activity. Adjudication is accordingly unsustainable - Decided in favour of assessee.

Summary

The Appellate Tribunal CESTAT NEW DELHI allowed the appeal stating that the appellant can claim Cenvat credit for Service Tax paid on hiring a JCB machine used for uprooting trees to make charcoal for manufacturing calcium carbide. The authorities failed to recognize the integral connection between the activities. The adjudication was deemed unsustainable.