9911796707
TMI Blog2015 (12) TMI 1305X X X X Extracts X X X X X X X X Extracts X X X X ..... covered by different fields of law. i.e. one by the excise law and the other by the service tax law. Mixing up of the two cannot be appreciated. There is no prohibition under the law for one person to be a manufacturer as also a service provider. The activity of providing service starts from procurement of pipes, where the activity of manufacture of pipes ends. As such we find no justifiable and valid reasons to deny the CENVAT credit of duty paid on the inputs used in the manufacture of pipes manufactured by the appellant as a manufacturer. Accordingly, the impugned order is set aside - Decided in favour of assessee. - E/26943/2013-DB, E/20488/2014, E/21022/2015 - Final Order Nos. 22063-22065/2015 - Dated:- 14-10-2015 - Archana Wadhwa, Member (J) And Ashok k Arya, Member (T) For the Appellant : Mr G Natarajan and Mr B Venugopal, Adv For the Respondent : Mr Ajay Saxena, AR ORDER Per Archna Wadhwa As per facts on record, the appellant M/s Megha Engineering and Infrastructure Ltd (hereinafter referred to as Megha) is engaged in the manufacture of MS Pipes in their factory located at Gowdavalli, Hyderabad. They are availing the benefit of CENVAT credit of du ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s or this sub-rule, gross amount charged for the works contract shall be the sum, - (a) including - (i) the value of all goods used in or in relation to the execution of the works contract, Whether supplied under any other contract for a consideration or otherwise; and (ii) The value of all the services that are required to be provided for the execution of the works contract; b) excluding - (i) the value added tax or sales tax as the case may be paid on transfer of property in goods involved; and (ii) the cost of machinery and tools used in the execution of the said works contract except for the charges for obtaining them on hire: Provided that nothing contained in this Explanation shall apply to a works contract, where the execution under the said contract has commenced or where any payment, except by way of credit or debit to any account, has been made in relation to the said contract on or before the 7 th day of July 2009. (2) The provider of taxable service shall not take CENVAT credit of duties or cess paid on any inputs, used in or in relation to the said works contract, under the provisions of CENVAT Credit Rules, 2004. (3) The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ods are cleared from their factory on payment of duty, such role gets complete and over. The role of a service provider starts thereafter from their registered office located at Balanagar, Hyderabad and the two roles are not required to be intermixed. Inputs for providing the works contract service is the pipes and not the inputs used for the manufacture of the pipes. The pipes procured by them are duty paid and they have not availed any credit of duty paid on the same so as to deny them the benefit of the composition scheme. The demand was also challenged on the point of limitation. 6. However, the adjudicating authority did not find favour with the above contentions of the appellants. He held that inasmuch as both the wings of the appellants i.e. the manufacturing wing and the service provider wing relate to the same assessee, it has be held that the EPC contract obtained by the assessee, which involved execution of the works contract from the stage of procurement of material involved in Its execution would start from the stage of procurement of raw materials for the MS pipes. Inasmuch as the appellant has availed credit on the inputs used in the manufacture of the pipes and i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts as a manufacturer was over when the pipes were cleared by them on payment of duty. Thereafter, their role as service provider emerged. The Revenue's view that the service activity would start from the stage of procurement of inputs used in the manufacture of pipes cannot be appreciated inasmuch as there was no obligation on the part of the service provider for manufacturing the pipes themselves. If the service provider was at liberty to procure the pipes from another manufacturer who could have availed the credit on the inputs used for the manufacture of pipes, the appellants as a service provider would have been entitled to the composition scheme inasmuch as admittedly they have not availed credit of duty paid on the MS pipes. Merely because the appellant is performing two separate roles, as a manufacturer and also as a service provider under two different registrations, the denial of the credit to the appellant is neither justified nor warranted. The provisions of Rule 3 (2) of the said rules contained a condition to the effect that no credit would be availed by them as service provider . Admittedly the service provider has not availed any CENVAT credit. There is no stipu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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