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TMI Blog2011 (3) TMI 610X X X X Extracts X X X X X X X X Extracts X X X X ..... turer’ or a ‘service provider’ to take credit of duty paid on inputs, capital goods and service tax paid on input service - The CENVAT credit is a kind of common kitty into which (a) credit of CVD paid on imported goods (if any) is taken; (b) credit of duty paid on inputs and capital goods procured locally from the domestic market is taken; and (c) credit of service tax paid on services utilised taken - There is no violation in utilizing the credit from the common kitty for payment of excise duty on goods manufactured and cleared by the respondents and for paying service tax on the services provided by the respondents - Decided in favor of the assessee - E/526/2010 - 406/2011 - Dated:- 4-3-2011 - Shri M. Veeraiyan, J. REPRESENTED BY ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rder, the respondents filed the appeal before the Commissioner (Appeals) who has set aside the order of the original authority. 4. Learned SDR submits the respondents while rendering the service of Repair and Maintenance engaged two engineering firms for executing the actual repair work at the customers site. The contract for Repair and Maintenance is between the respondent and the ultimate customers. The respondents receives service charges from the ultimate customers and pass on part of it to the engineering firms who have been engaged by the respondents for executing the repair activities. Original authority has rightly held that the engineering firms appointed by the respondents only did the repair services and that the responden ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y or the service tax. 6. I have carefully considered the submissions from both sides and perused the records. The dispute relates to services rendered by the respondents to their customers utilizing engineering firms as sub-contractors. The original authority held that the respondents have not rendered any Repair Service . It is not being disputed that the respondents are having contract for rendering services with the ultimate customers and they receive payment from them and ensure the quality of services rendered to them. Mere engagement of sub-contracts for some of the activities does not take away the role of respondents as service provider to their ultimate clients. The reasoning adopted by the original authority may lead to the con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the present case, the respondents is both a manufacturer and a service provider . There is no stipulation in the rule that there should be separate CENVAT credit accounts maintained when the respondents are acting both as a manufacturer and a service provider. The CENVAT credit is a kind of common kitty into which (a) credit of CVD paid on imported goods (if any) is taken; (b) credit of duty paid on inputs and capital goods procured locally from the domestic market is taken; and (c) credit of service tax paid on services utilised taken. 7.2 Rule 3(4) provide for manner of utilization of the credit. There is no violation in utilizing the credit from the common kitty for payment of excise duty on goods manufactured and cleared by th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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