9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (3) TMI 848 - AT - Central ExciseCENVAT credit - Consultancy Charges - Insurance Charges - Security Service Charges - Maintenance Services - Survey Fees - inputs/capital goods - MS Plates - Held that - both the lower authorities have mis-interpreted the provisions of the definition of input services as mentioned in Rule 2(l) of CENVAT Credit Rules - It is undisputed that the appellant herein is a manufacturer and had availed the CENVAT credit of the service tax paid on the various services which were, used by them, for setting up, modernization, renovation and repairs of the factory. The appellant is eligible to avail the CENVAT credit of the service tax paid on the services as also the Central Excise duty on MS Plates which were consumed in the factory premises, more so when there is no dispute as to the receipt of the input services and the inputs in the premises as also that factory was undergoing setting up, modernization, renovation and repairs. Appeal allowed - decided in favor of appellant.
Issues:
Eligibility to avail CENVAT credit of service tax paid on Consultancy Charges, Insurance Charges, Security Service Charges, Maintenance Services, Survey Fees, and Central Excise Duty on MS Plates. Analysis: The appeal was filed against Order-in-Appeal No. 49/2012 (T) CE dated 08.08.2012. The issue in question was the eligibility to avail CENVAT credit of service tax and Central Excise duty paid on various services during the period April, 2010 to September, 2010. The appellant faced a Show Cause Notice dated 28.04.2011 for recovery of the CENVAT credit availed, as it was claimed that the services received were not directly used for manufacturing activity and did not correlate to it. Both the Adjudicating Authority and the First Appellate Authority dismissed the claim of the appellant regarding the CENVAT credit, stating it was not properly explained. Upon hearing both parties, the Tribunal found that the lower authorities had misinterpreted the provisions of the definition of input services as per Rule 2(l) of CENVAT Credit Rules. The definition of "input service" during the relevant period entitled the assessee to avail CENVAT credit of the input service used in or in relation to the manufacture of final products. The Tribunal noted that the appellant, being a manufacturer, had used the services for setting up, modernization, renovation, and repairs of the factory premises. The services provided were indeed used for these purposes, as confirmed by the appellant in response to the show cause notice. Therefore, the Tribunal held that the appellant was eligible to avail the CENVAT credit of the service tax paid on the services and the Central Excise duty on MS Plates consumed in the factory premises. Consequently, the Tribunal deemed the impugned order unsustainable and set it aside, allowing the appeal in favor of the appellant. The operative part of the order was pronounced in open court upon the conclusion of the hearing.
|
