9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (5) TMI 563 - AT - Service TaxCENVAT credit - inputs - furniture used in the office of the appellant premises - Held that - The Board Circular clarifies that credit is eligible on furniture and stationary used in the office within the factory - reliance placed in the case of 2016 (2) TMI 316 - CESTAT MUMBAI , where it was held that the said tables and chairs are used for rendering services of general insurance, accordingly, the appeal filed by the appellant on this issue needs to be allowed. - denial of the credit is unjustified - appeal allowed - decided in favor of assessee.
Issues: Disallowance of credit on furniture used in the office premises.
Analysis: 1. Issue of Irregular Credit: The appellant, a provider of various taxable services, availed credit on inputs and input services used in providing output services. However, the Department noticed irregular credit on inputs, specifically furniture used in the office premises. The denial of credit on furniture led to the filing of the appeal. 2. Appellant's Argument: The appellant's counsel referred to Circular No. 943/4/2011-ST, highlighting that credit is eligible on goods like furniture used in the office within the factory premises. Citing the judgments in ICICI Lombard General Insurance Co. Ltd. and Agarwal Foundries cases, it was argued that similar views supported the eligibility of credit on such inputs. 3. Department's Stand: The Ld. AR reiterated the findings of the impugned order, maintaining the disallowance of credit on furniture used by the appellant in their office premises. 4. Judgment: The Member (Judicial) noted that the appellant indeed used furniture in their office to provide output services. Referring to the Board Circular and the judgment in ICICI Lombard General Insurance Co. Ltd., it was established that credit on furniture used in the office premises is eligible. The Tribunal found that the tables and chairs procured by the appellant were essential for rendering general insurance services, thus justifying the credit availed on them. Consequently, the denial of credit on furniture items was deemed unjustified, and the appeal was allowed with consequential reliefs, if any.
|
