2010 (6) TMI 306

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..... redit on input services and allowed the credit in respect of certain input services and disallowed the credit in respect of other services. It is submitted that the party filed appeal in respect of certain services on which credit was denied and the same has been decided by the Tribunal in the case of H.E.G. Ltd. v. C.C.E., Raipur reported in 2010 (17) S.T.R. 178. Against the impugned order, the Department has come on appeal in respect of some of the services on which the Commissioner (Appeals) allowed the credit. 4. The submissions on behalf of the Department and the appellant on the aspect of applicability of credit on the disputed services and the decisions, are recorded below :- (i) Repair and Maintenance of power plant : An amo .....

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..... t the credit on service tax paid on insurance premium shall be available. I find that the said decision relates to maintenance and repair of capital assets and the same have been treated as input services. In the present case, the insurance of the vehicle also is in relation to maintenance related activities of the vehicles and therefore, following the same ratio, the credit has to be allowed. Therefore, there is no reason to interfere with the order of the Commissioner (Appeals) in allowing the credit of Rs. 3,661/-. (iii) Repair and Maintenance and cleaning services : A sum of Rs. 42,110/- stands allowed by the Commissioner (Appeals) in respect of service tax paid on the above services. The submission of the Department is that the respo .....

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..... e same cannot be held to be related to directly or indirectly in manufacturing process of sponge iron. However, the statement of the authorised signatory relied upon in the show cause notice clearly indicates that these services have been utilised by the executives of the appellant only in relation to procurement of raw materials, sale of finished goods and connected business activities. Learned Advocate for the party relies on the decision of the Tribunal in the case of Ace Glass Containers Ltd. v. C.C.E., Meerut-I reported in 2010 (250) E.L.T. 110. In view of the above, I do not find any reason to interfere with the order of the Commissioner (Appeals). (vi) Commission on Sale : A sum of Rs. 1,56,317/- was allowed by the Commissioner (Ap .....

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