2008 (4) TMI 471 - AT - Service Tax

Cenvat Credit - The Commissioner (Appeals) has disallowed the Cenvat credit of service tax paid on input services namely, charge for getting cement brand price and overhauling of DG set installed in the power plant. Held that - Now the law is well settled that Cenvat credit used on inputs/capital goods used in power plant set up by the manufacturer is admissible if the final product is dutiable and therefore, in this case also the Cenvat credit of input ser vices for overhauling of DG set is admissible. Accordingly, the appeal is allowed on the above terms.

Summary

The Appellate Tribunal CESTAT, Ahmedabad allowed the appeal regarding disallowance of Cenvat credit on service tax paid for overhauling of DG set in a power plant. The Tribunal held that the credit is admissible as the final product, electricity, is dutiable. The credit for getting cement brand price was not allowed as it was not related to the clinker unit.