9911796707
TMI Blog2017 (1) TMI 550X X X X Extracts X X X X X X X X Extracts X X X X ..... rtakes repair and maintenance, for which no amount is specifically charged. For purposes of such repair and maintenance during warranty period, certain spare parts are consumed. The Department took the view that since no consideration is charged and no Service Tax is paid on such activity of repair and maintenance undertaken during the warranty period, the appellant is not entitled to the Cenvat Credit as inputs to the extent of spares used for rendering such service. Original Authority ordered for recovery of Cenvat Credit to the extent of Rs. 3,29,716/- along with interest and penalty. Further, he also demanded service Tax to the extent of Rs. 2,07,439/-, which was paid by utilizing such Cenvat Credit. 2. When the issue was challenged be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... i.- Del.) as well as in the case of Commissioner of C. Ex. & Cus., Vapi Vs. Apar Industries Ltd 2010(20) S.T.R. 624 (Tri.- Ahmd.). He further submitted that if the above two issues are decided in their favour the third point becomes anfractuous. 7. The ld. DR supported the orders passed by the authorities below. 8. Cenvat Credit taken on the inputs used as spares for providing repair and maintenance service during the warranty period has been disallowed in the impugned order. Such repair and maintenance services, when they are rendered during the warranty period are not specifically charged separately; hence Revenue has taken the view that Cenvat credit on such inputs will not be admissible. But I find that such benefit has been allowed b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppellant used in or in relation to manufacture of their final products, as free warranty repair and maintenance during warranty period, has enriched the value of the goods. This issue stands decided in favour of the appellant by the Tribunals judgment in the case of Danke Products (Supra) and Gujarat Forgings(supra and also in the case of Zinser Textile Systems Pvt. Ltd. (supra). In view of this, this Cenvat credit demand is also not sustainable and has to be set aside." By following the decision of the coordinate bench (DB), I am of the view that such Cenvat credit cannot be denied. 9. The Cenvat credit availed on services such as Cargo handling Courier services etc. stand denied on the ground that these services have no nexus with their ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
