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2015 (3) TMI 385 - AT - Central ExciseValuation of goods - Appellant is also taking CENVAT Credit of the valves used in the maintenance & repairs - whether appellant is required to add the value of the valve supplied during repairs & maintenance of the gas cylinders - Held that - After perusal of the representative invoices produced by the Ld.Advocate it is not coming out whether VAT is paid on the sale of valves as claimed by the appellant. Even if it is accepted that while providing the services there is sale of valves the same will amount to clearing of inputs as such on which CENVAT Credit is required to be reversed at the time of clearance as per CENVAT Credit Rules 2004. As the factum of payment of VAT/Sales Tax is not coming out of the copies of invoices relied upon by the appellant, the matter is required to be remanded to the adjudicating authority for such verification. Appellant is required to produce all the records before the adjudicating authority that VAT/Sales Tax is paid on the valves sold to the customers during the course of providing services. - Matter remanded back - Decided in favour of assesse.
Issues:
1. Whether the appellant is required to add the value of valves supplied during repairs & maintenance of gas cylinders. 2. Whether the appellant can take CENVAT Credit of the valves used in maintenance & repairs. Issue 1: The main issue in the present proceedings was whether the appellant needed to include the value of valves supplied during repairs and maintenance of gas cylinders in the taxable value of services provided. The appellant argued that the valves were goods separately sold, and VAT was discharged on them. The appellant contended that the value of the valves sold should not be added to the service value. On the other hand, the Revenue argued that for availing the benefit of a specific notification, the appellant should not take CENVAT Credit with respect to the valves. The first appellate authority had held that CENVAT Credit should not be taken for the valves. After hearing both sides, the Tribunal found that it was unclear from the representative invoices whether VAT was actually paid on the sale of valves as claimed by the appellant. The Tribunal concluded that if valves were indeed sold during the provision of services, it would constitute clearing of inputs, necessitating the reversal of CENVAT Credit as per the CENVAT Credit Rules 2004. The matter was remanded to the adjudicating authority for verification of VAT/Sales Tax payment on the valves sold during service provision, with directions for a de-novo hearing for the appellant to explain their case. Issue 2: Regarding the second issue of whether the appellant could take CENVAT Credit for the valves used in maintenance and repairs, the Tribunal noted that the issue primarily revolved around the verification of VAT/Sales Tax payment on the valves sold during service provision. The Tribunal emphasized that the appellant needed to demonstrate that VAT/Sales Tax was indeed paid on the valves sold to customers during the course of providing services. The Tribunal allowed the appeal by remanding the matter to the adjudicating authority for further proceedings and verification. In conclusion, the Tribunal allowed the appeal by remanding the case to the adjudicating authority for verification of VAT/Sales Tax payment on valves sold during service provision and for a de-novo hearing to allow the appellant to present their case.
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