2015 (9) TMI 786 - AT - Service Tax

Availment of CENVAT Credit - Whether the CESTAT is correct in holding that the assessee is entitled to avail the CENAVT credit on management, maintenance or repair services provided on services provided to Windmills installed and situated away from factory and factory premises - Held that - Input services provided in the present appeal were the same as discussed in the case law of the Hon ble Bombay High Court 2015 (6) TMI 82 - BOMBAY HIGH COURT - In view of the settled proposition of law, appeal filed by the appellant is allowed - Decided in favour of assessee.

Summary

Issues:
Interpretation of input services availed at Wind Mills away from factory premises.

Analysis:
The judgment dealt with the issue of availing certain services at Wind Mills situated away from the factory premises. The appellant argued that the Hon'ble Bombay High Court had framed a question regarding the entitlement of CENVAT credit on management, maintenance, or repair services provided to Windmills away from the factory premises. The appellant referred to a specific judgment to support their argument. The Hon'ble High Court had discussed the definition of input services and the wide scope of services covered under it. The judgment emphasized that input services need not be received at the factory premises for CENVAT credit eligibility. It cited previous cases to support the broad interpretation of input services, including services indirectly used in the manufacture of final products. The judgment clarified that the definition of input services includes various services related to the business of manufacturing final products. The judgment also highlighted the importance of reading the definition of input services in its entirety and not restricting it to specific categories. Despite the settled position on the issue, the appellant's challenge to the cited judgment before the Supreme Court was deemed irrelevant. Consequently, the appeals were dismissed based on the established legal principles. The appellant's appeal was allowed with consequential relief in light of the settled proposition of law.

This judgment provides a detailed analysis of the interpretation of input services concerning Wind Mills located away from factory premises. It underscores the broad scope of input services encompassing services indirectly used in the manufacturing process. The judgment clarifies that input services need not be restricted to specific categories and can include various services related to the business of manufacturing final products. The decision emphasizes the importance of interpreting the definition of input services comprehensively and not limiting it to certain types of services. Additionally, the judgment dismisses the appellant's challenge to the cited judgment before the Supreme Court, as it did not impact the decision based on established legal principles. Ultimately, the appellant's appeal was allowed with consequential relief in line with the settled proposition of law regarding input services at Wind Mills situated away from factory premises.