9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (5) TMI 1400 - AT - Central ExciseCENVAT Credit - input services - Supply of Tangible Goods service - Painting Services used for painting - Commercial or Industrial Construction Service - HELD THAT - The supply of Tangible Goods is in respect of hiring of Forklift which is used within the factory of production for handling of raw materials and finished goods. As per this use, it is clear that hiring of Forklift is in relation to manufacturing activity of final product and therefore, service tax paid on hiring of Forklift is admissible for Cenvat credit. Painting Service and Commercial or Industrial Construction Service - HELD THAT - The same is not for a new construction but only for repair and maintenance of the existing factory and plant and machinery. Therefore, the same is covered under modernization and renovation of existing building and plant and machinery and the service of painting, repair of factory building/ plant and machinery is admissible input service in terms of definition of Input Service. It is also observed that some of the invoices, in respect of which the Cenvat credit was denied, are for Annual Maintenance Contract for repair of Air Conditioners installed in the factory. There is no specific allegation regarding these service, otherwise also Annual Maintenance Contract for repair is in relation of manufacturing activity of final products. Hence, it is admissible for Cenvat credit. Appeal allowed - decided in favor of appellant.
Issues:
- Entitlement to Cenvat credit for services such as Supply of Tangible Goods, Painting Services, and Commercial or Industrial Construction Service. Analysis: The judgment by the Appellate Tribunal CESTAT Ahmedabad, delivered by Mr. Ramesh Nair, Member (Judicial), revolved around the issue of whether the appellant is entitled to Cenvat credit for specific services. The appellant argued that the supply of tangible goods service, used for hiring a forklift to handle goods within the factory, directly related to the production of final products. Additionally, the Painting Service and Construction Service were utilized for repair and maintenance of the factory building and plants, making them admissible as input services. The appellant also highlighted that some invoices pertained to the Annual Maintenance Contract of Air Conditioners, which were not disputed as input services. Several judgments were cited in support of the appellant's case, including those of Panchmahal Steel Limited, Lenovo India Pvt. Limited, TVS Motor Co. Limited, Vardhman Acrylics Limited, and Bajaj Hindustan Limited. Upon considering the submissions and records, the tribunal found that the eligibility of Cenvat credit for the appellant concerning the mentioned services was the crux of the matter. It was established that the hiring of a forklift for handling raw materials and finished goods within the factory was directly related to the manufacturing activity of the final product, making the service tax paid on this hiring admissible for Cenvat credit. Similarly, the Painting Service and Commercial or Industrial Construction Service, utilized for repair and maintenance rather than new construction, were deemed eligible as they fell under the modernization and renovation category for existing buildings and plant machinery. The tribunal also noted that invoices related to the Annual Maintenance Contract for repairing Air Conditioners installed in the factory were permissible for Cenvat credit, as they were linked to the manufacturing activity of final products. The judgments cited by the appellant's counsel further supported the decision to set aside the impugned order and allow the appeal. In conclusion, the judgment provided a detailed analysis of the eligibility of Cenvat credit for various services utilized by the appellant, ultimately ruling in favor of the appellant based on the direct relation of the services to the manufacturing activities of the final products.
|
