2015 (12) TMI 78 - AT - Service Tax

Availment of CENVAT Credit - Maintenance and Repair Services - Held that - It is seen that Service Tax credit is pertaining to the services availed for maintenance and repair of Xerox Machine used by the appellant in their office. Services availed with respect to the said machine in the office of the appellant will be an activity in relation to the business of the appellant. Accordingly, it is held that Cenvat credit was correctly taken by the appellant. - Decided in favour of assessee.

Summary

Issues:
- Appeal against denial of Cenvat credit for maintenance and repair services related to Xerox machine used in the office.

Analysis:
The appellant filed an appeal against the denial of Cenvat credit amounting to Rs. 9,076 by the adjudicating authority and upheld by the first appellate authority. The issue at hand pertains to availing Cenvat credit for maintenance and repair services in connection with a Xerox machine utilized in the appellant's office. The appellant's consultant argued in favor of availing the credit, citing relevant case laws such as Parason Machinery, Aditya Birla Nuvo Limited, Cadila Healthcare Limited, and Maruti Suzuki Limited to support their stance. Additionally, reference was made to a previous order where credit for repair and maintenance of a photocopier machine was allowed for the same appellant.

The Revenue, represented by Shri J. Nair, defended the decisions of the adjudicating and appellate authorities. After hearing both sides and examining the case records, the Tribunal noted that the Service Tax credit in question was related to services availed for the maintenance and repair of the Xerox machine used by the appellant in their business operations. Relying on the judgments cited by the appellant, the Tribunal concluded that the services associated with the Xerox machine were integral to the appellant's business activities. Consequently, the Tribunal held that the appellant had correctly availed the Cenvat credit.

In light of the above analysis and the established legal precedents, the Tribunal allowed the appeal filed by the appellant. The operative part of the order was pronounced in court, granting relief to the appellant in the matter of Cenvat credit for maintenance and repair services concerning the Xerox machine.