2016 (11) TMI 1644 - AT - Central Excise

CENVAT Credit - cost of warranty - HELD THAT - Once the warranty has a contractual obligation, meeting the cost of warranty by the appellant suffering service tax should not disentitle to the Cenvat credit - Appeal allowed.

Summary

The Appellate Tribunal CESTAT Chennai allowed the appeal regarding Cenvat credit for warranty service tax paid by the appellant, as it is an integral part of the manufacturing process and should not be disallowed. The adjudication to this extent was set aside, and the appeal was allowed.