2019 (1) TMI 1498 - AT - Central Excise

CENVAT Credit - various input services - services related to fitting of Bolt on the different equipments which are finished goods - maintenance of computer - upgrade in software - Training on enhancement for the computer software - calibration services - testing of cable of power supply - maintenance of server services - testing Inspection and Analyses service - maintenance of the website charges - office maintenance - Disinfection treatment of wooden boxes - services of filing of bolts on equipment - Held that - All the services on which the credit was disputed were used by the appellant in relation to the manufacture of final product. The service of maintenance of computer is essential for the overall operation of the factory activities which is in relation to the manufacture of the final product. Similarly the upgrade in software, Training on enhancement for the computer software and the calibration services all are related to the maintenance of computer and software, therefore, they are input service. The testing of cable of power supply is a regular affair while running the factory, therefore, it is related to the manufacture of final product, maintenance of server services also similar to the maintenance of computer software. The testing Inspection and Analyses service is a routine affaire in manufacturing unit which is essential for uninterrupted manufacturing activity. Similarly the maintenance of the website charges, office maintenance, Disinfection treatment of wooden boxes wherein the goods were packed, repairing of electricity motor used for production purpose, repair and maintenance of crane which is used for loading and unloading of the goods within the factory premises, maintenance of Air Conditioner installed in the plant. All the services are essential services for running manufacturing operations. As regard the services of filing of bolts on equipment is directly in relation to the manufacture of final product. Therefore credit is admissible. All the services which are the subject matter of this case are indeed inputs services and appellant are legally entitled for the Cenvat Credit - credit allowed - appeal allowed - decided in favor of appellant.

Summary

Issues Involved:
Whether the appellant is entitled to Cenvat Credit for various input services used in relation to the manufacture of final products.

Analysis:
The main issue in this case was whether the appellant is eligible for Cenvat Credit for various input services utilized in the manufacturing process of final products. The appellant contended that all the services in question were directly related to the manufacture of final products in their factory, thus falling under the definition of input services as per Rule 2(l) of Cenvat Credit Rules, 2004. The appellant's counsel referred to a previous tribunal order in their favor regarding the admissibility of maintenance and repair services as input services.

The Revenue, represented by the Deputy Commissioner, reiterated the findings of the impugned order. Upon examining the arguments from both sides and reviewing the records, the Member (Judicial) observed that all the disputed services were indeed used by the appellant in relation to the manufacturing process of final products. The maintenance of computer, upgrade in software, training on enhancement, calibration services, testing of security cameras/power supplies & cabling, maintenance of server services, testing, inspection and analysis services, maintenance of website charges, office maintenance charges, disinfection treatment of wooden boxes, repairing of electric motors, repairs and maintenance of crane, and maintenance of air conditioner were all deemed essential for the factory operations and directly related to the manufacture of final products. The Member (Judicial) concluded that all these services were essential for the manufacturing operations and, therefore, the appellant was entitled to Cenvat Credit for them. The services of fitting bolts on equipment were also considered directly related to the manufacture of final products, making the credit admissible.

In light of the above analysis, it was determined that all the services in question were indeed input services, and the appellant was legally entitled to the Cenvat Credit. Consequently, the impugned order was set aside, and the appeal was allowed.